An online personal loan is a popular choice for Canadians as it offers flexibility. It can be used for many purposes and obtained from many reputable lenders.
Unfortunately, some lenders do not make it easy to obtain an online personal loan. They may have a lengthy, complicated application process and very exacting requirements. Even loyal customers can be turned down, because their requirements are so picky.
If you have less than stellar credit or little connection with a big bank, major lenders probably aren’t going to give you a loan. Luckily, you have other options and they don’t include making an appointment, taking time off work, or filling out a mountain of paperwork only to discover the answer is “no”.
How an Online Personal Loan Works
An online personal loan is a great option when you need to borrow a large amount of money without all the hassle. In most cases, it is a better option than a high interest credit card and can provide higher limits than most low-interest credit cards.
An online personal loan can also help fill a financial gap if you are expecting money in the future. It is also a good choice if you need to spread your debt over a longer period. Plus, it does not require collateral such as your car or home to secure it, making it far more accessible.
Lenders offer a wide range of loan amounts and various interest rates and repayment terms so you can balance your loan with your budget. However, interest rates, the application process, customer service, and how quickly the lender disburses your personal loan funds can vary greatly between lenders.
Once you’re approved for your online personal loan, you’ll receive a lump sum payment. You will start to make equal monthly payments to pay off the loan within the repayment period. Some companies allow extra payments or an early repayment without penalty, others do not. Check out this post regarding online personal loan realities vs expectations.
It is always important to consider your financial situation before you take on debt. However, in many cases an online personal loan can make financial sense. It is a flexible financial product that suits many needs.
If you’re paying off many high interest credit cards or multiple loans, it makes sense to combine all the balances under a single online personal loan. Credit cards can have an interest rate as high as 29.99% and certain loans carry interest rates of over 100%.
An appropriate online personal loan can lead to a lower interest rate, less time to pay off your debt, a simple single monthly payment, and less stress. You may even be able to build your credit.
Improving Your Credit Score
Paying your online personal loan payments on time could help improve your credit score. If you have a history of late payments, a solid repayment history shows creditors you’ve learned how to handle credit responsibly. Timely repayment represents 35% of your overall credit score.
An online personal loan also adds to your “credit mix”. This mix of accounts represents 10% of your overall credit score.
Buying a Vehicle
If you want to buy a car, RV, or boat, you will probably need a personal loan. Most people don’t have tens of thousands of dollars to pay in cash and applying online is simpler and faster.
An online personal loan makes it possible to buy the vehicle you want immediately, but you repay the loan through affordable monthly payments. There’s no need to deplete your savings or emergency fund.
Improving Your Home
If you want to do a small or mid-sized remodel in your home such as upgrading your kitchen, installing a new roof, or buying new appliances an online personal loan is often a good fit. Many homeowners don’t have equity in their home or they don’t want to use it as collateral. Just apply online and get an answer quickly.
Paying Emergency Expenses
Unfortunately, life can throw us unexpected curveballs. Fortunately, an online personal loan can help you cope with unexpected expenses such as a new hot water tank, fridge, or washer, car repairs, pet bills, and medical bills, expensive prescriptions, and medical aids not covered under health plans.
If you need to make an emergency trip to visit a sick family member, you will need to pay for emergency airline tickets upfront and they can be extremely expensive. If you are stuck someplace while traveling, the costs can be especially high considering the current situation in the world.
Making a Long Distance Move
Long distance moving is very costly, especially if you’re transporting all your furniture and belongings and you have a large household. If you need to ship a vehicle, the price is even higher.
Even if you decide to hire a truck and a trailer to do the move yourself, it is still very costly. An online personal loan may be a better option than throwing thousands of dollars on your credit card or paying a huge sum of money out-of-pocket when you’ll have many expenses as you set up your home in your new location.
Buying Costly Electronics
Do you want a new computer system, gaming system, or entertainment center? You’ll quickly discover the latest gadgets probably cost thousands of dollars and probably far more than you want to draw from a savings or chequing account, if you have funds available.
Big box stores do offering financing, but beware. Interest rates are notoriously high and you’ll probably pay high administration fees too.
Paying for Major Life Events
An online personal loan is often a good choice when you know you will be paying for big ticket items such as a wedding, honeymoon, engagement and wedding rings, an anniversary party, or your dream vacation.
Charging costly expenses on your credit card adds up quickly and you’ll pay significant interest. An online personal loan can help you finance all these events without dipping into your savings or emergency fund and usually at a lower interest rate.
Is the Application Process Complicated?
It shouldn’t be. Nobody wants to spend hours digging up documents and most people don’t have time to visit an office to finalize their personal loan.
Today, people expect to be able to do everything online and want a personal loan at a competitive interest rate. They also want to get their money quickly and easily.
Do You Qualify?
Luckily, even if you do not qualify through one lender, another may offer you a personal loan. Nonetheless, even more lenient lenders will have minimum requirements such as a certain level of income and credit score, a solid credit history over recent months, no bankruptcy within seven years, and a reasonable debt-to-income ratio.
FlexMoney differs from many other lenders as it does not have a minimum credit score requirement. Instead, they use an artificial intelligence scoring system that allows them to make a fully-informed decision. Your credit score is only one of the factors used to determine whether you qualify.
This “smart” system may overlook past indiscretions such as a report of insufficient funds on your credit file if other aspects of your application and credit history show strength. However, the system will not approve your application if you have a bankruptcy on your credit file within the past seven years.
Applicants should take their time when they complete their online personal loan application. One of the most common reasons for a declined application is incomplete information. Inaccurate information also leads to rejection.
Finally, the system compares what you earn to what you owe. Generally, it looks for a debt-to-income ratio (DTI) of 40 percent or less.
What About Fees?
Customers don’t want to pay to set up an account with a lender. Unfortunately, this isn’t always the case as many lenders charge an “origination fee”.
Some lenders also penalize borrowers if they want to pay extra payments or pay off their online personal loan early. FlexMoney does not charge fees and welcomes additional payments or full payment at any time.
What About Interest Rates?
Interest rates for online personal loans can vary greatly. FlexMoney offers highly competitive rates, but your interest rate on your online personal loan will depend on the information provided in your application and other factors. If you have a solid source of income and provide accurate information, your chances of a decent rate are good.
FlexMoney is totally transparent. Each application is reviewed case-by-case with the outcome determined by the system and your data. If you don’t like the interest rate they offer, you can shop elsewhere.
What Can You Do If You Don’t Qualify?
No reputable lender can promise 100% approval. If you do not qualify with FlexMoney, you will need to re-examine your financial situation. You may need to reduce your debt to improve your credit score or find a secured loan with a co-signer.
How Long Until You Receive Your Money?
Your online personal loan funds can usually be in your bank account within 24 hours of approval if you borrow from FlexMoney. Our competitors usually take between three and five days.
We lend throughout Canada and offer telephone, email, and online support if you need it. However, the process is simple and straightforward. There’s no paperwork, no waiting in line, and we do not ask for financial statements. Consequently, we offer one of the top online installment loans in Canada.
Find Out More
If you’re interested in exploring an online personal loan through FlexMoney or you have more questions, visit our website. You can also find more information on choosing the best Canadian online installment loans here. Whether you need a small loan or up to $15,000, our loans offer many benefits. We offer the best online experience, hands down.