A recent Angus Reid survey revealed that over half of Canadians making less than $50,000 a year are either in bad or terrible financial shape. When it’s difficult to keep the lights on and put food on the table, many people look for fast loans to help ends meet.
If this sounds like you, don’t worry. We’re here to go over some of your options for short-term loans that can help you get by until your financial situation improves.
Here’s how to get a loan today.
Decide on the Type of Loan
First, you need to know that there are many types of loans suited to different purposes.
A personal loan lets you borrow a fixed amount of cash as long as you agree to pay it back, along with interest and other fees, within an agreed-upon timeframe. There are two general types of personal loans: secured and unsecured. There are even more subcategories.
Make sure to only borrow what you know you can afford to pay back. Remember there’s accrued interest and other fees to consider as well.
You must consider the option of collateral when you choose a loan. A secured loan requires collateral. Borrowers will need to put up an asset, such as property, stocks, etc.
The downside to secured loans is that you can lose those assets if you fail to pay back the loan, so it’s risky.
Generally, secured loans are best for those that need larger sums of money. They have lower interest rates and it may be easier to qualify. However, you must consider your ability to pay it back.
Examples of secured loans include:
- Title loans
- pawn loans
- Some personal loans
On the other hand, an unsecured loan does not require collateral.
These are usually smaller amounts and people like this option because they include no-credit-check and online loans.
That said, there are still consequences if you can’t pay back your debt. There’s the right of offset, which is when a financial institute recovers the money you owe them. You may have money on deposit with them or their affiliates, and they can take those funds without your permission.
Again, this is why it’s crucial to only take out as much money as you can afford to pay back.
Examples of unsecured loan options include the following:
- Credit cards
- Personal lines of credit
- Student loans
- Unsecured personal loans
Long-Term vs Short-Term Loans
Another factor to consider is how much money you need, as this will impact the loan timeline.
Do you need fast loans and quick cash? If so, short-term loans are the ideal choice. Quick online options are best for people that need around $500 – $750 or so, and need it fast.
Perhaps you want the cash to help get you through until your next paycheck or to cover an unexpected emergency. Medical bills and car repairs can often throw a wrench into your financial plans, after all.
Long-term loans are better for people that need a large sum of funds to cover a big purchase, such as a new car or a house.
For the purpose of this article, we’ll be covering unsecured loans, as that’s the best way to get funds fast.
Check Your Credit Score
While there are plenty of no-credit-check loans, you want to know where you stand. Ideally, borrowers should have a score of somewhere between 610 and 640. The better your credit score, the better the rate.
Understanding this number can give you an idea of where you can improve as well. For instance, maybe you don’t have a long credit history or your utilization rate is too high. It’s always good to increase your score, as lenders will see you more favorably.
Determine How Much You Need
So, you need to get a loan today, but how much do you need to get by? You don’t want to borrow more than necessary since you’ll have to pay it back.
Look at your income and expenses and create a budget. How did you get to this point and how can you avoid it in the future?
If it was an unexpected emergency, plan for how to save for these incidents. In the meantime, decide the loan amount that you need.
Look at the Qualifications
At EasternLoans, you must meet the following criteria:
- You’re 18 years old or older
- You’re a Canadian citizen
- You have a Canadian bank account (and receive a direct deposit)
- You have a steady income (more than three months)
- Your monthly income is at least $1,200 (direct deposit from employer)
- Have a low short-term debt ratio
- You’re not applying for or considering bankruptcy or a consumer proposal
- Little to no insufficient fund transactions
It helps to gather all your financial documents before submitting an application. That way, you can quickly fill out the online form. The faster you apply, the sooner you can get approval.
Submit the Application
The final step is to fill out all the necessary information, such as your legal name, residence, and revenue information. Expect to explain your pay schedule, such as every week or twice a month. You also need to explain how you receive your wages.
Always read the full terms and conditions, so you know what to expect.
Depending on when you submit the application, you may see money deposited in your account that same day.
Get a Loan Today
Yes, it is possible to get a loan within 24 hours. So, if you need fast loans in Canada, use these tips to get started.
Here at EasternLoans, we’ve been helping Canadian residents take out quick loans for years. We understand times are hard, and that’s why we offer some of the best rates in the industry!
Apply now and get a loan today.