What Interest Rates Does Spring Financial Offer?

At Spring Financial, we offer a wide range of interest rates for our personal loans. They range from 9.99% to 46.96%.

What Does It Mean When the Rate is Advertised as an APR?

APR stands for Annual Percentage Rate and, while it does include the interest rate, all additional costs and fees associated with a loan are also included. For example, say the APR on a loan is given to you at 24%. This would mean that the cost of the loan is 2% of the outstanding principal loan amount per month (24% / 12 months).

What Interest Rate Could I Qualify for with Spring?

The interest rate that we match you with will be the best-fit rate according to your current credit situation. Our smart technology assesses your credit profile in real time and allows us to get you your best-fit rate as soon as the same day without ever having to leave your home.

How Does My Credit Score Affect My Interest Rate With Spring?

In Canada, credit scores range from 300-900 with 300 being the lowest and 900 being the highest. These credit scores measure your financial responsibility by looking into 5 different categories:

• Payment history
• Credit utilization
• Credit history
• Inquiries
• Public records

Each one of these categories represents a percentage of your overall credit score. How you rank in each of these categories will either reduce or increase your score. Having a lower credit score represents difficulty with financial responsibility resulting in a higher interest rate. A higher credit score represents the ability to handle your finances well and results in a lower interest rate.

What Will My Payments Be on a Personal Loan?

If you are interested in seeing what your payments could be on a personal loan, our loan calculator takes your credit score, preferred term and preferred loan amount to determine an estimated monthly payment.

While we can’t guarantee you will get these payments, it is a good way to determine if you can reasonably afford the payments. To get an accurate interest rate, fill out our online application and see what the best fit rate is for you.

Are There Different Types of Interest on Our Personal Loans?

Yes there are 2 different types of personal loans. Simple interest and compound interest. All the loans at Spring Financial are simple interest loans.

How Does Simple Interest Work?

Simple interest loans are calculated based on the principal amount owing on the loan. Every month your principal changes, since part of your monthly payment goes towards the principal and part towards the interest. Once you have made your first payment, the payment will stay the same but a little more will go towards the principal and less towards the interest.

This cycle continues until it is paid off. This is calculated by using the monthly interest rate. So if your interest rate is 24%, then 2% of the currently outstanding principal is your interest payment every month.

How Does Compound Interest Work?

Compound interest loans are similar to simple interest loans except for the fact that interest is applied to both the principal balance as well as the accrued interest on the loan. Your loan payments will be calculated the same way as simple interest, except they will include the compounding periods. Every loan will have a different compounding period and can range anywhere from daily to monthly to yearly.

The compounding period is when the interest is added to the principal and then the interest is calculated on this number. Because these compounding periods are already decided when you get your loan approval, they are already included in your monthly payments so you will not be charged extra.

Are Compound Interest Loans Different Than Credit Cards?

The main difference between compounding interest on personal loans and credit cards is that credit cards usually compound more frequently than personal loans. With personal loans, the compound interest is already factored into the monthly payments which usually never change.

Where compound personal loans usually compound on a monthly basis, almost all credit cards compound interest on a daily basis. Keep in mind that credit card interest doesn’t begin until your monthly payment is due. This is why having a high balance on a credit card is much more difficult to pay off than a personal loan, and why the minimum monthly payments do very little to your overall balance.