Securing a loan from your bank often requires time and a good credit score. If you are lacking in either — or want the best rate — Loans Canada can help.
Loans Canada is a lending platform that connects you with online lenders who are willing to offer you a suitable financial solution.
Online lenders have shorter processing times and less stringent requirements than brick-and-mortar lenders. Since there are so many different lenders to choose from, picking the right one can seem challenging. That’s where Loans Canada comes in. They match you with the best online lenders in less time than it takes you to drive to a physical bank branch.
Continue reading our Loans Canada review to find out how they can help you secure the right loan for your needs.
Who is Loans Canada
Founded in 2012, Loans Canada has only one aim — to match Canadians with the best borrowers for their needs. Loans Canada doesn’t issue loans itself. Instead, it connects borrowers with different online lenders. They specialize in working with borrowers who have thin credit files or below-par credit scores or who are going through bankruptcy or consumer proposal.
Loans Canada Facts
Founded in 2012
Headquartered at Toronto, ON
Finding the right loan solution is easy
Getting the loan you need becomes easier when you have plenty of options to choose from. And this is where Loans Canada proves their worth. Since they specialize in different kinds of loans and work with many online lenders, you can rest easy knowing they will help you find a financial solution that meets both your needs and budget.
Fast solution; Avoid multiple hard credit inquiries
Loans Canada does all the leg-work — so you don’t have to. In addition, they help you avoid multiple hard credit inquiries.
With Loans Canada, you submit a single loan application instead of speaking with several lenders. Once your loan application is submitted, they evaluate it for compatibility with a wide range of lenders. This, in turn, makes the whole process of finding a loan easy, simple, and less stressful.
When you apply for a loan, the provider usually requests a review of your credit report, resulting in a hard inquiry. Each hard inquiry may knock off up to five points of your credit score. Loans Canada ensures there aren’t multiple hard inquiries on your credit report. That’s good news for your credit score.
If you don’t do your homework thoroughly, you may have to apply with several lenders before you get approval. That would mean inviting multiple hard credit inquiries, which won’t bode well for your credit score.
With Loans Canada, you can easily avoid this situation. Since they show only compatible options, all you must do is pick the best provider.
Better chances of loan success
Let’s face it, if you’re in need of fast cash but have a credit score that’s less-than-perfect, finding a lender who’s willing to offer you a loan can be a challenge.
By working with Loans Canada, you have far better chances of achieving financial success. Since they work with a large number of lenders with different lending specializations, they’re able to connect you with a provider who’s ready to work with your situation, regardless of your credit history.
Long-term financial success
For Loans Canada, the job doesn’t end at connecting you with a suitable lender. They also help you pay off the loan, which is crucial for improving your creditworthiness. A better credit history, in return, can help you set yourself for success long term.
Empowers the borrower community
Loan Canada is unique in the sense that it allows consumers to rate lenders. This way borrowers can easily find out which companies are worth applying for and which not.
Who is Loans Canada for?
Loans Canada is for anyone looking for a loan, but some borrowers are likely to benefit more from using their services than others. If any of the following situations describe you, this lending platform could be a good fit.
- You need a loan quickly (within 48 hours) – If you’re in need of quick cash, Loans Canada is a great option. It will quickly put you in touch with lenders who specialize in quick personal loans.
- You have a thin credit history – Loans Canada works with a large number of online lenders. Many of them offer financial solutions designed for consumers with little or no credit history.
- You have a poor credit score – Whether you’re looking for a credit-building loan to improve your creditworthiness or a traditional personal loan to deal with a financial emergency, Loans Canada matches you with lenders willing to work with your unique situation.
- You want to shop for better rates – The local brick-and-mortar lender may be willing to issue you a loan, but is their rate the best in the town? Comparison shopping is the only way to ensure you’re getting the best bang for your buck. Loans Canada shows you the top available offers so that you can pick the best provider.
- You are looking for an alternative to payday loans – The biggest advantage of a payday loan is that it is easy to access. Most lenders give you access to cash within 24 hours. However, the attached high fees make it a very expensive way to borrow money. Loans Canada offers an easy application and quick access to the funds (within 48 hours) — minus the prohibitively high fees associated with payday loans.
Types of Loans Offered
Loans Canada offers a variety of loan types, which are discussed below.
A personal loan is a form of credit intended to cover large purchases or unexpected emergencies. More often than not, these are unsecured loans, meaning they don’t require any sort of collateral backing. Generally, lenders use your credit along with a variety of other factors like debt to income ratio and income, to decide whether or not to approve your request and what interest rate to charge you. You can get up to $50,000 of personal loans from Loan Canada’s partner network.
Debt Consolidation Loans
If you’re overrun with several high-interest loans, you can use a debt consolidation loan to bundle them into one place with one monthly payment. This can help you reduce the total interest you owe, making it easier to pay off the debt.
An auto loan is a secured loan that uses the car you’re purchasing as collateral. If you’re unable to make loan payments as you agreed, the lender can take possession of your car and sell it at a fair market price. With Loans Canada, you can find lenders that offer both new and used car financing.
Loans Canada can help you find secured and unsecured business loans. Their partners can also provide you with a tailored product if you are looking for an equipment financing or commercial mortgage lending solution.¬
A credit-building loan is exactly what it sounds like — a loan to help you build credit. If you have a poor or no credit history, paying off a loan on time is one of the ways in which you can build credit.
The paradox, however, is that you require a good credit score to qualify for a traditional loan. Credit-building loans offer a way out of this conundrum.
You don’t need a decent score for approval because, unlike conventional loans, these loans are not designed to help you cover a large expense or financial emergency. The loan amount for which you are approved is held in a bank account until you make all the payments. Once that’s done, the lender will issue the principal amount to you.
The lender will report your loan payments to at least one of the two main credit bureaus in Canada, TransUnion and Equifax. The information contained in your credit reports, in turn, helps build your credit score. If you pay off the loan on time, by the time it expires you’ll have an improved credit score.
Loans Canada works with several providers that offer specialized solutions to Canadians who are looking to build credit.
Home Equity Loans
Canadian homeowners can use a home equity loan to borrow against the value of their home equity — the difference between your home’s market value and the balance on your mortgage.
For example, let’s say the market value of your home is $600,000 and your mortgage balance is $470,000. That means you’ve built up equity of $130,000 in your home. Lenders generally allow consumers to borrow up to 85% of their home equity.
A home equity loan tends to have lower interest rates than most other types of personal loans. That’s mainly because you are using your home for collateral, meaning if you default, the lender can seize your property.
Not to mention mortgage pre-approval loans, which are loans promised from a provider and looks good when shopping for houses.
How to Apply for Loans Canada?
Loans Canada’s application process is simple and takes less than five minutes to complete. Start by selecting the type of loan you want and providing some basic personal information, such as:
- Name and age
- Phone number
- General employment information
The lender will then ask you to submit documentation, such as:
- Bank statement
- Employment proof
- Pay stubs
- Proof of citizenship (Canadian) or permanent residency
- Social Insurance Number (SIN)
- Void cheque
Loans Canada sends approval notifications via phone or email. Most of its partners promise to process unsecured loans within 48 hours. If you’ve received no reply within that timeframe, follow up with your matched lender or service provider. Keep in mind though that some secured loans, such as a home equity loan, have longer processing times. This is because they involve more paperwork and due diligence to process.
Once approved, the lender will directly deposit the funds into your account or issue a cheque.
Why We Like Loans Canada
Get access to cash within 48 hours
Most people think of approaching a bank when they need a personal loan. But traditional banks usually take several days to process loans. If you can’t afford to wait that long, think Loans Canada. You can get your hands on much-needed cash within as little as 48 hours.
Getting a loan is one thing, getting it at the lowest-possible rate is another. If you don’t want to pay a penny more than you have to, compare rates of different providers. That, however, can be time-consuming if you approach every provider separately. By contrast, with Loans Canada, you get the best offers soon after apply, allowing you to make an informed decision quickly.
With Loans Canada, you get several options to choose from since they are partnered with many online lenders.
One-stop shop for all kinds of loans
Loans Canada provides a wide range of loans: personal loans, business loans, car loans, home equity loans, you name it.
The entire application process is online
With Loans Canada, you can apply from the comfort of your home any time of the day.
What We Didn’t Like about Loans Canada
Some lenders charge a loan origination fee
Some Loans Canada’s partners include a loan origination fee in the final bill. It is basically a fee that lenders charge to cover specific processing expenses associated with providing a loan.
Interest rates vary
Lenders use the information contained in your credit report to decide your creditworthiness. People with little or no credit history or a poor credit score have to pay higher interest rates.
Conclusion — Is Loans Canada Right for You?
Loans Canada is a top-rated lending platform that makes it easier for borrowers to secure the right loan, regardless of their financial circumstances or credit scores. The entire application process is online and, in most cases, you can get a loan within 48 hours. They are a great option for all Canadians who need access to cash quickly, have a less-than-perfect credit record, or want several lending options to choose from.