How to Qualify for a Low Interest Loan

Whether you’re applying through a bank, credit union or private lender, the requirements to get approved for a low interest rate loan are virtually the same. To be considered for a personal loan from any lender, you must be the age of majority (18 or 19, depending on your province) and be a Canadian citizen or permanent resident. From there, the lender will go over the other requirements.

However, lenders like Spring Financial can possibly be more lenient on credit score requirements, as all credit scores are welcome to apply!

Can you Qualify for a Low Interest Personal Loan Rate With Bad Credit?

While getting a personal loan with bad credit isn’t always as difficult as you may think, you’re likely to have a much higher interest rate if you don’t have a decent credit score. While some personal loan lenders will offer you a lower interest rate with a minimum credit score of around 620, anything under 600 may result in a higher rate offer because you’re seen as a risky borrower.

Personal loan providers will give loans to people with bad credit but at a higher interest rate. While this isn’t always ideal, it’s much better than a payday loan, which doesn’t increase your credit score at all. Payday loans typically have even higher interest rates, so much higher that they’re often called “predatory loans.” In many cases, the interest payments alone are double or triple your original loan amount.

With an unsecured personal loan, you can improve your credit score whenever you make a timely payment. And increasing your credit score allows you to get a loan with a lower interest rate in the future.

While this may not seem like much, an unsecured personal loan is considered one of the most powerful forms of credit building. This is because no collateral is attached to the loan, and the lender is essentially betting on you to pay the funds back.

Is There Such a Thing as an Interest Free Loan?

No, personal loans don’t come interest-free. Interest is necessary for the lender to make money and to reduce the risk when loaning money.

However, there are credit cards that may be offered interest-free for a certain period, usually up to two years. These credit offers are most often provided by furniture and appliance companies. If you need the cash for this type of purchase and intend to repay the money quickly, a limited-time no-interest credit card offer may be a good alternative to a personal loan.

But remember: once the interest-free period on these cards expires, the rate is much higher than that of a regular credit card, so it’s important to pay it off on time.

Get a Low Interest Personal Loan With Spring Financial

Applying for a low interest personal loan with Spring Financial is easy. You can apply directly online and receive approval quickly. Once you have the credit approval and accept the offer, you can typically get your money on the same day. If you prefer a direct deposit to another financial institution, we can transfer the money in one to two business days into your verifiable bank account or eligible cash management account.

Whether you need a personal loan for debt consolidation, to pay some bills, to make a large purchase or just for some extra cash, there are no limits on what you can use your personal loan funds for. So, if you’re looking for a great annual percentage rate and don’t want to wait to receive your personal loan funds, apply today!