What to do When Applying for Personal Loan Financing but Everyone Says NO!

prudent1This month we’ve been focussing on achieving a fresh start for 2016, and this week is no different. We know that many individuals set a goal to spruce up their finances as a resolution for the New Year, and that is great. What isn’t great is when you are applying for personal loan financing to achieve this goal but keep getting rejected.

Just because it seems as though everyone is saying no, doesn’t mean you can’t obtain personal loan financing – all lenders look for different things, and there are lenders out there that believe in second chances.

Banks – Banks like people with good credit who can prove their income – these are the characteristics they look for when lending. Since they base their approvals on these items, even if you have security, if you have any income, employment or credit issues they will shove you out the door faster than you entered.

Credit Unions – Credit Unions, typically, are a little bit more flexible than the banks, but since they follow a similar process, you usually still need to have decent credit to borrow.

Finance Companies – Finance Companies will often lend to people with problematic credit, but since you represent a higher risk, you will pay through the nose in interest. Additionally, most will not lend to bankrupts, people in proposals or self-employed individuals who have not reported a lot of income to the Canada Revenue Agency. We said most, but not all – Prudent is the only lender in the GTA that lends to undischarged bankrupts, people who have completed at least 2/3 of their proposals and self-employed people who have some security to provide – and rates are not sky high.

Payday Loans – Payday lenders are bad news, no matter how you slice it. They will lend to anyone with a paystub, but these loans represent the highest interest credit products on the market and the high cost of borrowing can lead to serious financial trouble, very quickly. Our best advice – no matter which option you choose, stay away from this one.

When you are looking to secure personal loan financing, your best option is to research different lenders online, determine what their lending criteria is and be honest about your financial profile – this way you can choose the right lender for your employment, income and credit history.

At Prudent Financial, we have loans to suit every type of employment, income and credit history – from fantastic to not so stellar. Call us today at 1-888-852-7647.


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