Canadians have over 2 trillion dollars in debt on credit cards alone. The need to borrow money is both normal and common in Canada, so if you find yourself in a position where you need to do the same, do not worry. But, what if your situation is unique and banks will not help you out?
This article will help you understand how private loans may work better. They can offer very different options for those who want to get the money fast and with less red tape.
One of the main reasons people get frustrated with traditional banks is how long they take to do everything. The bureaucracy can impact the speed at which a loan comes in, meaning you might be far too late to pay for the thing you need.
By investigating private lending, you will find options that are much faster and do not demand that you wait several days or even weeks for a loan. The submission of an application and subsequent processing can be as fast as the same day. Some lenders even guarantee that the transfer will occur within 24 hours to give you the assurances you need for peace of mind.
Even if you receive an application denial for any reason, you will get this in short order. This means you can start the search for other options sooner. There is no downside either way, and you may as well start the application sooner rather than later.
Easy Online Application
If you want a bank loan, you often need to book an appointment with the institution and go there to discuss your options with them. This can be tedious, and even drag into your work day, losing you money while you learn if you can even borrow.
Personal loan agreements often instead have much more simple processes, with many of them using a simple online form. This will not only allow you to take your own time to put your details in but you can even do it on your mobile if you need to. The forms are also designed to be very clear, giving you transparency on what the bank is basing your application on.
This puts all the power in your hand and even removes the need to speak face-to-face if you cannot handle that.
Bad Credit Options
Working with a bank can be very hard if you happen to have bad credit. You will often be denied bank loans if you have gone through hardship in the past, making it hard to drag yourself back out of debt. Past credit issues have far too high an impact on your credit score, and even if you come into money they may cause you harm long-term.
Many private lenders will also offer the ability to consider factors beyond only your credit score. They are likely to put much more emphasis on the stability of your income, knowing that a person’s financial situation might change. Some may even consider personal or professional references that discuss your general character.
Private loan offerings allow you much more flexibility in looking at your repayment options than bank loans. A private lender can even discuss repaying in low loan installments over a much longer time if your earnings are not high. This may work for people going through hardship who need a small boost and is something a classic bank will not consider.
While your application will often work through an online form, you do have good options for getting in contact with any private loan company. Despite not being an existing customer, many of these organizations have 24/7 phone contact to help people run through their options.
By talking to them over the phone, you can discuss your specific circumstances and what you might need to consider before applying. They can even offer input to ensure you get the best range of loan offerings from their lending company.
Lower Documentation Threshold
Banks are notorious for wanting a great many pieces of evidence to show your financial stability. These might include your proof of identity, various and sundry bank documents, previous or existing debt data, etc.
In general, banks need as much information as possible to assess your credit score, and this may often demand large numbers of documents.
Private lenders, on the other hand, only need data that shows who you are and that you are conceivably capable of repaying them. Sometimes you may need to prove that you have possession of any collateral you put up, although if you do not offer any then this will not be the case.
Lower Borrowing Limit
Most bank loans start at high amounts of money, from thousands upwards. Many banks will not even consider loaning you anything below the one-thousand mark, and will often have many questions at numbers this low.
Private loan companies understand that people borrow for many different reasons. For this reason, they offer loans as low as a few hundred dollars to help with private issues people might have. This gives you much more control over smaller tweaks in your finances.
Private lenders often have very strict policies related to sharing data with third parties. Banks instead often sell data to external groups without the informed consent of the borrower. Even if anonymized, this can sometimes have an impact on you.
Borrow Money From a Reputable Lender
As you can see, it is often beneficial to borrow money from a private and personal loan agreement rather than a financial institution. If you think you want to pursue this option, we can help you out.
Our team can discuss your needs and let you know what we can do to give you the best loan for your existing finances. So, give us a call and allow us to help you get back to financial independence.