Whether you received an unexpected medical bill, need extra cash to cover a job loss, or want to take on a home renovation project, it’s normal to seek financial assistance. While searching for the ideal financial solution, you might have encountered unsecured loans.
In Canada, unsecured loans have gained significant popularity as a flexible borrowing option for individuals in need of financial assistance. Unlike secured loans, which require collateral, unsecured loans do not necessitate any assets to be pledged as security. If you’re looking for an unsecured loan online in Canada, consider FlexMoney. We offer a streamlined borrowing process, allowing you to skip lengthy applications and time-consuming interviews to get quick access to cash.
An unsecured loan is a desirable option for many individuals. But it’s essential to get answers to a few questions. For example, what is an unsecured loan? How can you get one? What is the purpose of the loan? Learn more about unsecured loans in Canada to make informed financial decisions when borrowing money.
What is an Unsecured Loan?
The first question that arises when looking for an unsecured loan in Canada is: what is an unsecured loan? Understanding the secured loan meaning will help you determine if this is the right option for you, based on your financial needs.
An unsecured loan is a type of borrowing that doesn’t require collateral or any form of security. This makes unsecured loans accessible to a broader range of individuals who may not possess substantial assets or don’t wish to risk their valuable possessions.
Secured vs. Unsecured Loans
Secured and unsecured personal loans are both popular borrowing options in Canada. However, there are a few differences between the two forms of lending.
Secured loans require collateral that you pledge as security against the borrowed amount. The lender can seize the collateral to recover their funds if you fail to repay the loan. Secured loans generally have lower interest rates than unsecured ones because the collateral reduces the lender’s risk. But it’s important to note that you have rights when it comes to debt collection, whether you get a secured or unsecured loan in Canada. So, the chances of you losing your collateral immediately are unlikely.
Unsecured loans, on the other hand, do not require collateral. Since the lender has no collateral to seize if you default, unsecured loans are considered riskier for lenders. As Canada’s most innovative digital lender, FlexMoney offers a flexible borrowing process to all customers. We serve Canadians from coast to coast and offer loans from $500 to $15,000, with 6 to 60 months terms.
How Do Unsecured Loans Work?
Many Canadian institutions offer unsecured loans, but the requirements can vary based on the company. Some lenders may require a high credit score or proof of employment.
At FlexMoney, we strive to eliminate the intimidation factors of getting a loan. So, getting online personal loans in Canada is straightforward with FlexMoney. All you have to do is fill out a simple online application, wait for approval, and get the funds transferred within hours.
We aim to ensure all our customers have access to the funds they need, so we need it easy to qualify for a loan and don’t require lengthy paperwork or documentation. To offer you an unsecured personal loan, we require the following:
- A steady income source, whether through employment, disability tax credit, or other employment insurance.
- An open and active bank account with at least three months of transactions
- Canadian citizenship; at least 20 years old
- A valid email address and mobile phone number
- No involvement in active bankruptcy, consumer proposal, or credit counselling program.
In exchange, we offer a simple application process that takes 100% online, competitive rates, transparency about all charges, and a streamlined process with the help of artificial intelligence assessment with less emphasis on your credit file.
Types of Unsecured Loans
There are a few unsecured loans in Canada that consumers can access when they need financial help. Getting familiar with different types of unsecured personal loans can help you make informed borrowing decisions.
Unsecured Personal Loans
Personal loans are one of the most common forms of unsecured loans, and can be used as a moving loan, renovation loan, or medical loan, among other things. FlexMoney offers unsecured personal loans of $500 to $15,000 with the option to customize the loan term based on your needs.
Unsecured Credit Cards
Unlike secured credit cards backed by a cash deposit, unsecured ones rely solely on the borrower’s creditworthiness and income. Unlike secured credit cards backed by a cash deposit, unsecured ones rely solely on the borrower’s creditworthiness and income. The cardholder can use the credit card to make purchases up to their designated limit and must repay the borrowed amount within a specified time frame.
Unsecured credit cards typically charge interest on any outstanding balance, and the interest rates may vary based on the borrower’s credit score and history. These cards offer flexibility and convenience for making purchases, but it’s important to manage them responsibly to avoid accumulating excessive debt and damaging your credit score.
Personal Lines of Credit
Personal lines of credit are typically used to cover significant expenses that are spread over an extended period. This revolving credit provides individuals access to a predetermined amount of funds that can be borrowed and repaid multiple times. Unlike traditional loans, where you receive a lump sum upfront, personal lines of credit allow borrowers to withdraw funds up to the approved credit limit as needed. The borrower is only charged interest on the amount they have borrowed.
Government-backed and private student loans are both typically unsecured. That said, government-backed lenders may accelerate a loan so that it’s due immediately and can seize a borrower’s federal tax refund to recoup the outstanding loan balance. Student loans are designed to fund educational expenses, such as tuition fees, books, and living costs. They do not have a specific asset tied to them, so no collateral is involved. However, in some cases, government-backed lenders can accelerate the loan to receive the payment immediately or seize the borrower’s federal tax refund. So, it’s important that you learn the best ways to tackle debt if you’re having trouble paying your student loan promptly.
Purpose of Unsecured Loans
Unsecured personal loans primarily provide individuals with access to funds for various personal or business needs without requiring collateral or assets as security. They offer borrowers the flexibility to use the funds for their desired purposes without the risk of losing their assets in case of default.
Some people may face unexpected expenses, and gathering cash can be challenging, especially if they have limited income, no emergency funds, or liquid assets. An unsecured personal loan with FlexMoney is a great way to get an emergency loan in Canada when you need the funds most. Our automated system and simple application process ensure you don’t have to complete lengthy paperwork or wait days to find out if you’re approved.
How to Get an Unsecured Loan with FlexMoney?
The process of getting an unsecured loan in Canada can vary based on the lender. Some lenders rely significantly on credit scores, which often raises concern among borrowers, how to get an unsecured loan with bad credit? The good news is, at FlexMoney, we don’t focus on credit scores. You will likely get approved in minutes if you meet our minimal requirements.
Our Toronto personal loans are designed to ensure all customers have a streamlined process when seeking funds on our platform. Even if you don’t qualify for a loan with a traditional lender, we can assess your situation to determine your eligibility for an unsecured loan with FlexMoney.
If you’re looking for personal loans in Hamilton, FlexMoney can offer you the funds you need. We don’t require proof of income or ask for financial statements. We verify your income through your bank with your permission. This makes it easier for us to complete the process and get you the funds sooner.
We serve Canadians from coast to coast, offering a seamless borrowing process for Canadians in Edmonton. You can easily apply for online loans in Edmonton through our website and avoid in-person interviews or office visits. We operate 100% online for your convenience and comfort.
FlexMoney is happy to offer unsecured loans in Canada to residents all around the country. All you have to do is go on our website, get your no-obligation quote, and share some basic information with us so our automated system can determine if you qualify for an unsecured loan.
If you need more information about our lending process, don’t hesitate to get in touch with us! Our dedicated customer care team is available to reduce your financial stress and help you make informed borrowing decisions.