Many times, it seems that getting approved for a loan is a really difficult task, especially if you are young and have not built up a credit score or if, by the vagaries of life, your score has declined in recent years. However, there are several tips to get a quick loan approval and easily, so in this article we bring you the best tips to get approved for a loan in Canada.
1. Consider what type of loan you want to get
No matter what tips we give you here for getting approved for a loan, the first thing to consider is what type of loan you need. This is because, depending on the loan, you will receive more or less money and you will be required to provide certain documentation or credit score.
Among the most common loans in Canada are mortgages, which are focused on home ownership and are closed-end loans, so that you can lose the property if you fail to make the payments. For these, a good credit score is required and usually goes through a process known as pre-approved loans.
There are also vehicle loans, which, as the name implies, are made in order to purchase a new or used automobile. Like mortgages, they are closed-end and can be approved for a loan at banks or directly with dealers for your vehicle.
Finally, there are the slightly smaller loans such as credit cards or personal loans. Credit cards are open-ended and most people will have one or another throughout their lives. Generally, this is an approved loan by a bank and is paid month to month with different interest rates.
Personal loans, on the other hand, are the ideal option if you want a quick loan approval. These are usually a fixed sum of money which you can invest in what you want and, in most cases, you don’t need a good credit score to be approved for a loan.
2. Documentation required to get approved for a loan
Although, as stated above, not every loan approval requires a credit score, there are certain elements that you should have if you want instant loan approval in Canada.
First of all, to be approved for a loan, according to Canada’s government website, you must be of legal age. Although minors can enter into various contracts, loans are not one of them. In some cases, they can get a credit card, but their parents must sign for it and will assume responsibility for the payments if they are approved for a loan.
Secondly, there is a high possibility that in order to apply for any loan you will be required to be a Canadian citizen or at least a permanent resident. This is especially true for loans such as mortgages.
Third, the vast majority of lenders will ask for a report of your income for loan approval. Even if they check the credit score, there is a high probability that in order to be approved for a loan they will ask to see documentation which certifies how much the individual who will be responsible for the payments earns. This can be requested through bank statements or paycheck stubs from your employer.
On the other hand, and in relation to income, it is possible that a quick loan approval requests an expense report. This not only facilitates the process of getting approved for a loan, but also allows you to establish payment terms and installments that do not interfere with your daily life.
3. Choose the right lender
When you have your paperwork ready and the needs for which you need the money, you should find the lender that best suits what you are looking for. Thus, for a mortgage you can get advice from a real estate agent and go to a bank. On the other hand, if you need an instant loan approval in Canada for an unexpected expense the best option is to look for a personal loan.
When it comes to personal loan options, it is currently possible to find quite a few options on the Internet, however, you should be careful to choose one with good reviews. If you are worried about which lender to go to, we recommend Good Life Loan.
At Good Life Loan you can get up to 1,500 Canadian dollars without any problem, you only need to report your income, expenses, be of legal age and have a Canadian residence. It is ideal for emergencies or unexpected expenses since in less than ten minutes you can be approved for a loan. Also, at Good Life Loan you can schedule your payments as it is easier for you.