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Unsecured Loans Canada:
5 Tips to Secure Them

Over65% of Canadians have taken out a personal loan before, meaning borrowing money in Canada is a common practice.

But what if you don’t want to put up collateral? How can you get an unsecured personal loan?

That’s where unsecured loans come in. If you’ve been searching for “unsecured loans Canada,” then this article is for you.

We’re outlining what unsecured loans are, how they can help you, and 5 tips on qualifying for unsecured loans in Canada. Let’s dive in.

What are Unsecured Loans?

Unsecured loans are loans that don’t need security deposits or collateral to receive. Instead of putting up your own assets, you can qualify for these loans based on your income and credit history.

This means lenders can’t take your property away if you fail to meet payments. There’s a deal in place to pay your lenders back, but you won’t be risking your house on it.

They often come in the form of unsecured personal loans, credit cards, or student loans.

Fast Approval Even With Bad Credit

Secured vs. Unsecured Loans

But what’s the difference between secured and unsecured loans. Like we mentioned earlier, collateral is the distinguishing factor.

When you apply for a secured loan, you have to put up an asset. Whether it be your car, house, or jewelry, the lender has the right to seize that asset if you default on a loan.

Secured loans are also used mainly for mortgages and car loans. In these cases, the house or car itself becomes collateral.

As such,unsecured loans does away with any assets altogether. You won’t lose any property for failing to make payments.

Fast Response

56,000

Customers since 2017

Hour Approval

APPLY ONLINE AND SECURE FUNDS QUICKLY

1. Apply Online

2. RECEIVE SPEEDY APPROVAL

3. FUNDS DEPOSITED INTO YOUR BANK ACCOUNT

How Unsecured Loans Work

Lenders start by checking your credit history to see whether you’ve paid off loans in the past. Things like your credit score within your credit reports help evaluate your creditworthiness.

You generally need good credit scores to be approved for an unsecured loan. While you can certainly get these loans with less-than-stellar credit, you should only do so with trusted lenders.

Banks will also ask for proof of income. This is so they can judge how much your new loan will burden your monthly revenue.

Benefits to Unsecured Loans

The main benefit to unsecured loans is that you won’t be out of a home or a car if you fail to make a payment. The only thing at risk is your credit score.

This decrease in risk is one of the main reasons people take on unsecured loans in Canada. Plus, you might be able to discharge your loan if you file for bankruptcy.

How it works

Who we are

We are an online financial service provider. We work with licensed private lenders, to provide short term financial solutions, that are significantly less expensive and more flexible than a conventional payday loan. Good credit, bad credit, it doesn’t matter. We will assist you in finding the financial product that suits your needs.

Fees and Interest

Depending on the risk associated with the application, Our lenders charge an APR ( Annual percentage rate) of 22% to 32%. Membership fees do apply. Please refer to our “Example Cost of Borrowing” section for more information.

Terms of Repayment

Our installment loans can be paid weekly, bi-weekly, bi-monthly, or monthly. The payment schedule depends on the customer’s pay frequency. Unlike payday loan providers, our lenders offer loan terms of 90 and 120 days. Extended payment schedules are available for loans over $1000.

What Makes us better than Payday Lenders

Typically, Payday Loan providers require borrowers to finalize entirely on their next paycheck. The costs associated with payday loans vary from province to province.

The ABR (Annualized Borrowing Rate) for

payday loans ranges between 390% to as high as 560%.
installment loans from 514loans range between 22% and 32%.

Our ABR includes all fees and interest associated with our installment loan product. Our cheaper ABR and more flexible terms make our product a better choice for Canadians in need of a short term financial solution.

Example Cost Borrowing

$300 borrowed over 98 days on a bi-weekly payment schedule, at an APR of 32%, will cost the borrower 7 payments of approximately $44.99. The total amount reimbursed is roughly $314.93, of which $14.93 is the cost of borrowing. This includes all membership fees as well as interest and capital.

Missed Payments

Our lenders charge a $50 fee for any returned payment due to NSF (Non-Sufficient Funds). The missed payment, as well as the lenders’ fee, are added to the end of your payment plan schedule. Two additional payments are extended to the payment plan.

Our Lenders charge a fee of $35.00 to reschedule a payment and extend the payment plan.
The rules for rescheduling payments are the following:

A client can not reschedule the first payment.
A client can not reschedule two payments in a row
A client can not reschedule more than two payments per loan term.

Borrow Money Responsibly

This type of financing is meant to be used as a bridge to solve an immediate financial crisis. Interest rates are relative to risk and may be higher than conventional banking institutions.

Please note that having Multiple Installment Loans or Payday Loans can result in long term financial burdens. Please give us a call if you are caught in a loan cycle due to predatory loan practices. Our agents will assist you in finding a consolidation product that will prevent costly collections procedures as well as a negative impact on your credit file.

Please borrow responsibly.

Applying Online is Safe with us

Your important personal information is encrypted and protected using Bank Level Encryption Security. We are HTTPS secure, and our users can expect a safe and private online experience when using our website.

How to Qualify for a Personal Loan

Our application process is simple and easy on PC, tablet, or mobile phone. The following is criteria is necessary to qualify for a loan:

You must be a Canadian citizen
You must be over 18 years of age
You must be employed full time.
You must have an active bank account.
Must not be engaged in a consumer proposal or a bankruptcy process.

5 Tips for Qualifying for an Unsecured Loan

Now that you know the basics behind unsecured loans, let’s look at whether you can qualify. While getting an unsecured loan isn’t always easy, there are plenty of tips you can follow to improve your chances.

Here are 5 such tips to help you qualify for an unsecured loan.

1. Credit Score

Having a good credit score is the biggest factor in whether you qualify for unsecured loans. The best credit score will get you unsecured loans with the lowest interest rates.

You can still get loans with a bad credit score, but your interest might be higher. Paying your other loans and building a longer credit history will improve your score.

2. Debt-to-Income Ratio

Banks and other lenders will also look at the debt-to-income ratio. This is the percentage of your current monthly debts relative to your income.

Lenders seek this ratio out to see how much you’re already in debt. Keeping a low DTI ratio is crucial, as a high ratio might indicate that you won’t be able to make monthly payments.

Look to have a ratio of about 40% to qualify for unsecured loans in Canada.

3. Bank Account Transactions

Unsecured loan payments become crucial parts of your monthly budget. Lenders often look at your monthly bank account transactions to see how much money is flowing in and out.

Keeping a consistent flow of cash in your bank accounts might improve your chances of qualifying. This shows that your unsecured loan payments can fit properly into your budget.

4. Consider a Cosigner

If you have bad credit and don’t want to be burdened by predatory lenders or higher interest rates, there’s another option. Lenders might still qualify you for an unsecured loan if you havea cosigner.

A cosigner takes on the loans alongside you, meaning there’s equal responsibility between the two of you. Cosigners not only improve your chances of approval but usually lowers the interest rates as well.

5. Online Applications

If you need unsecured loans to show up in your bank account sooner rather than later, an online application is the way to go.

Completing the application online allows you to not only get everything sorted out at home but also increases the time it takes for the money to show up in your account.

SECURE FUNDS DEPOSITED ON THE SAME DAY

Where to Get Unsecured Loans

Before you follow our tips for qualifying for unsecured loans, you need to find the right lender from which to borrow. Now that every institution brings different monthly payments and interest.

Online Lenders

Online lenders offer pre-qualification. This process involves submitting some personal information and getting a preview of what your loans will look like. This is the best option if you need to qualify for an unsecured loan as soon as possible.

Credit Unions

Credit unions are good options for those with below-average credit scores. You have to be a member of a credit union to qualify. This means paying a membership fee or being associated with a company that works with the union.

Banks

If you already have a relationship with a bank, they might be able to offer unsecured loans. Banks can offer larger loan amounts, but typically only work with you if you have a good credit history.

Leveraging Unsecured Loans Canada

Qualifying for unsecured loans is all about finding the right lenders and keeping your records in order. Use this guide to find the best unsecured loans Canada has to offer.

Are you a Canadian resident looking to apply for a loan? Contact us today, or check out the rest ofour blog for more informative articles!

Canadian Banks

Scotiabank
Royal Bank
TD Bank
CIBC
BMO
Desjardins
ATB Financial
HSBC
Alterna
Canadian Western
First Nations
Laurentienne
Manulife
National Bank
Tangerine

Frequently Asked Questions

What is an installment loan?

A cash advance is a short term financial solution, often used to cover car repairs, collection notices or any other type of unexpected expenses. Short-term cash advance services fulfill a need not met by traditional financial institutions, offering a less costly and often more desirable option for short-term loans.

A non-traditional cash advance is often the best way to receive a quick loan. The Community Financial Services Association of America, a US payday-lending trade association, reports that non-sufficient funds (NSF) charges cost consumers tens of billions of dollars each year from banks and credit unions. CFSA notes that millions of people each year “choose payday advance as a dignified, discreet, and often less costly solution for cash flow problems, without asking family for money or risking personal items as collateral.”

Many applicants also struggle to attain traditional financing despite having excellent credit. Many of them need quick access to working capital. Online lenders have emerged as a welcome alternative for borrowers everywhere. Online lenders are increasingly being used by consumers and businesses to get fast access to capital outside of banks. Also known as marketplace lenders, they “have leveraged low operating costs, minimal regulations, Big Data, and technology streamlined for a mobile generation to mediate terms between everyday borrowers who want quick access to cash.

What are the requirements for an installment loan?

We like to keep things simple.

You must be over 18 years of age
You must be a Canadian citizen
You must be employed full-time
You must have an active bank account
You must not be engaged in a consumer proposal
You must complete an IBV (Instant Bank Verification)

Can self-employed individuals apply for an installment loan?

Absolutely! Just as long as our agents can verify a frequent source of income through your IBV (Internet Banking Verification).

How much can I borrow with an installment loan?

Our loans range from $300 to $3000.

However, ou lender’s credit risk may assign a different amount than originally requested. This assures that the borrower will be able to reimburse the loan without any negative impact on their budget and/or financial situation.

When will the funds be deposited?

Your funds are deposited automatically as soon as we receive your signed electronic contract. Deposits typically happen on the same day; however, some deposits can take up to 24 hours to appear in your bank account.

What documentation is needed for an installment loan?

You may fax or upload your documents during your application process.

The required documents are:

A copy of your driver’s license
A proof of residence (any most recent utility bill with your name and address indicated on it)

Areas Served

Proudly serving Canadians with no credit check installment loans, the best alternative to payday loans and the go-to alternative financial services. Thanks to you, we are the fastest growing installment loans provider across the country.

Where are you from?

Prince Edward Island

Charlottetown, Summerside

514loans - Payday Loan Alternative

Canada

+1 844-508-2274

Monday: 9 AM - 6 PM

Tuesday: 9 AM - 6 PM

Wednesday: 9 AM - 6 PM

Thursday: 9 AM - 6 PM

Friday: 9 AM - 6 PM

Saturday: CLOSED

Sunday: CLOSED