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  • Jan 15th, 2021 2:09 am
[OP]
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Aug 9, 2016
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Personal Loan

I just wanted to ask everyone for advice. Our family is in need of emergency funds due to a family member being hospitalized back in our country. I was wondering which is a better institution to loan. Is it the bank or to fairstone?

Thank you
21 replies
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HELOC?
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John8graz wrote: I just wanted to ask everyone for advice. Our family is in need of emergency funds due to a family member being hospitalized back in our country. I was wondering which is a better institution to loan. Is it the bank or to fairstone?

Thank you
The bank will likely be cheaper. A personal loan, a line of credit, or as someone mentioned below, a HELOC. But they will all take time to process, with the HELOC being the most time-consuming.

Fairstone is one step above the payday loan companies, I think. Perhaps easier to get an unsecured loan from them than the banks, but you'll pay for it.

C
[OP]
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Thank you all.

I haven't really thought of the rates but I assumed the easiest way to get cash though is through fairstone?

But now I know, thanks a lot everyone for your inputs
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John8graz wrote: I just wanted to ask everyone for advice. Our family is in need of emergency funds due to a family member being hospitalized back in our country. I was wondering which is a better institution to loan. Is it the bank or to fairstone?

Thank you
The best place to get a loan depends on your situation.
You have to tell us more

-whats your credit score?
-do you own a home with equity?
-how much do you make and how solid is your employment?
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CNeufeld wrote: The bank will likely be cheaper. A personal loan, a line of credit, or as someone mentioned below, a HELOC. But they will all take time to process, with the HELOC being the most time-consuming.

Fairstone is one step above the payday loan companies, I think. Perhaps easier to get an unsecured loan from them than the banks, but you'll pay for it.

C
Some offer smaller loans or lines of credits secured against home equity with quicker processing time. Higher interest rate though.
[OP]
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UrbanPoet wrote: The best place to get a loan depends on your situation.
You have to tell us more or

-whats your credit score?
-do you own a home with equity?
-how much do you make and how solid is your employment?
Thank you UrbanQuote.

My current credit score is at around 7.8
I don't have any home/property here in Canada.
Currently employed with an annual income of $40000
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John8graz wrote: Thank you UrbanQuote.

My current credit score is at around 7.8
I don't have any home/property here in Canada.
Currently employed with an annual income of $40000
Do you meAn 780?
Thats considered very good.

If youre not all maxed out on credit....
Just go to the bank with all your pay stubs and bank statement ready. Bring a t4a to be thorough.

If it is really a life or death situation ... you could just max out your credit cards to send money. Then make a cobsolidation loan after. You risk not getting approved for a consolidation loan.
But 19.99% creditcard is better then these 30-59% payday loan type companies.
Deal Addict
Jan 15, 2017
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Usually unsecured loans like those at Fairstone are open loans. This means that while they may charge you 29.99% interest, you don’t actually have to pay that rate. You can effectively lower that rate by paying extra payments and by paying earlier. There are usually no penalties for this with open loans.

One of the best ways you can reduce the amount of interest that you pay is to make your first payment the very same day that you receive your loan. These loans are often structured so that your first payment isn’t for 30 or 45 days, during which the loan is just earning interest. Making a payment right away reduces this.

The reality is if you are in a position to repay the loan quickly and greatly reduce the amount of interest that you pay, these loans can work.
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Dec 16, 2005
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skeet50 wrote: Usually unsecured loans like those at Fairstone are open loans. This means that while they may charge you 29.99% interest, you don’t actually have to pay that rate. You can effectively lower that rate by paying extra payments and by paying earlier. There are usually no penalties for this with open loans.

One of the best ways you can reduce the amount of interest that you pay is to make your first payment the very same day that you receive your loan. These loans are often structured so that your first payment isn’t for 30 or 45 days, during which the loan is just earning interest. Making a payment right away reduces this.

The reality is if you are in a position to repay the loan quickly and greatly reduce the amount of interest that you pay, these loans can work.
Personal line of credit, home equity line of credit, credit card cash advance all work the same way with lower interest. The only reason to go to a place like Fairstone is because you don't qualify for the aforementioned.
Newbie
Jul 2, 2019
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Generally, a personal loan is a type of loan that involves borrowing a set amount of money and paying the creditor off with interest in a structured payoff schedule. These loans are “unsecured” because you don’t have to put up any collateral (such as your house, car, etc.) to get the loan; instead, lenders use your personal credit and other factors to determine eligibility. The concept is simple and similar to the borrowing you’re used to: you borrow and pay that money back. One of the benefits is that you have more flexibility with what you can use the money for.
Newbie
Jan 12, 2021
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HI, I am in need of a personal loan (or LOC) for wedding purposes somewhere in around 6 months time.
My credit is in the Fair range, TU - 643, Equifax - 588.
CC's:
1. Can. Tire Triangle Mastercard- $2000 limit ( just got approved this month and first statement will be posted on 17th of this month, Jan )
2. Capital One Unsecured Mastercard- $1800 limit ( I got a credit limit increase from $300 to $1800 after nearly 2.5 years with Cap One, and it strangely happened after I got approved for the Can. Tire Mastercard)

I have 1 new car auto loan ($15000) with Scotia through a dealer but for a very very APR 11%. I took it as I needed a vehicle for my work and didn't want a used car with an even higher APR. It's an open ended loan though.
I also have 1 installment loan with a balance of $478 as of now. I pay all my bills on time for the past 2 years. But I have had one collection in my name for $738 which I foolishly didn't bother to pay until 2019 Jan.

I make around 60k a year now.

What are the odds of getting a personal loan or LOC and which bank will give me a better rate. My Transunion score is better than Equifax so I assume RBC who pulls report only from Transuinion might be a better choice?? Should I or can I use my car as a collateral. I am looking for 15k in a personal loan or CL, whichever has a lower interest.

Thank you
Newbie
Oct 7, 2020
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VishnuS47257 wrote: What are the odds of getting a personal loan or LOC and which bank will give me a better rate. My Transunion score is better than Equifax so I assume RBC who pulls report only from Transuinion might be a better choice?? Should I or can I use my car as a collateral. I am looking for 15k in a personal loan or CL, whichever has a lower interest.

Thank you
I can't speak on the odds of getting a personal loan or LOC, other than that you may be near the low end of where a bank will approve an unsecured loan. I was once advised that credit unions tend to be easier with their members.

If you obtained your scores from Credit Karma, Borrowell or Transunion/Equifax directly, be advised that you are not getting the FICO score that most lenders use, and that all those sources use their own algorithms, so while Transunion may be better, that isn't necessarily the case. The best thing to do is check your credit report with both agencies to see if one is painting a different picture than the other (for example, if only one of them is showing the collection, or if only one is showing inquiries, the other may be preferable).
Newbie
Jan 12, 2021
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Hi, BC is beautiful

Thanks for the response. I went to RBC today with my Credit score, T4s, paystubs etc just to gauge how they view me. The advisor said it will be difficult to get a loan with the for 2 primary reasons 1) I don't have assets (cash or property) to show them for the amount I asked 2) nor I bank with them so they can see my payrolls coming through my account. The advisor told I rather switch my banking to them and try when I needed it which is in around 6 months. So, I guess I will also enquire with Meridian Credit Bureaus, where I just opened an account but haven't started making any transactions yet. Hope they will be more willing to work with me.

Also, The credit scores are directly from the 2 credit bureaus. The Credit karma, Credit Keeper (from Capital one) both show the same score (643) as the real Transunion score, so I plan to cancel the Transunion subscription keep the Equifax and membership going.
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VishnuS47257 wrote: What are the odds of getting a personal loan or LOC and which bank will give me a better rate. My Transunion score is better than Equifax so I assume RBC who pulls report only from Transuinion might be a better choice?? Should I or can I use my car as a collateral. I am looking for 15k in a personal loan or CL, whichever has a lower interest.

Thank you
I would say that your odds of getting a personal loan are best at the institution that you normally bank with (as long as you don't only bank at online only banks which might not offer personal loans or lines of credit) and you already don't have a personal loan or line of credit with them.

For example, I bank at TD Canada Trust and they have the majority of my investment assets. I can go there and can probably get a fixed term/rate loan (if I didn't want to use the line of credit that they already gave me) without too much problems or issues. Similarly with RBC (although I don't have as much assets with them but still have enough that I should be able to get a loan with them without too much hassles after a few days as long as it was lower than the investments that I hold with them)

If I were to go to Bank of Montreal or Scotiabank or another financial institution that I don't deal with, I'm sure they will not only do a hard credit check on me (which is understandable) but will also ask for proof ranging from my most recent paystubs to the notices of assessments for the last year or the last few years.
Newbie
Jan 12, 2021
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Thank you. They ( RBC) basically said I likely wont get a loan because of depreciable liability ( around 18k) and no assets. So, is it the same with all banks. I have heard from many that they have got loans or U LoC. I understand it is a bunch of other criteria as well. And is it worth switching my payroll from TD to RBC and build a history with them. I don't want to bank with TD or ask them for a loan as they have rejected a credit card loan and even overdraft protection, though I've been with them for 7 years. Which makes me wonder if I should close my TD account (checking n saving) and focus banking only on RBC and build a substantial savings with them, and who knows they may offer me something few years down the road.
Member
May 5, 2016
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VishnuS47257 wrote: Thank you. They ( RBC) basically said I likely wont get a loan because of depreciable liability ( around 18k) and no assets. So, is it the same with all banks. I have heard from many that they have got loans or U LoC. I understand it is a bunch of other criteria as well. And is it worth switching my payroll from TD to RBC and build a history with them. I don't want to bank with TD or ask them for a loan as they have rejected a credit card loan and even overdraft protection, though I've been with them for 7 years. Which makes me wonder if I should close my TD account (checking n saving) and focus banking only on RBC and build a substantial savings with them, and who knows they may offer me something few years down the road.
Relationships with banks help with the margin cases like yours, you're credit score is a bit on the lower side with the recent accounts hurting you, both your credit card and auto loan. It never looks good when you're seeking credit in a quick succession.
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Oct 24, 2016
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azorahai wrote: I would go through your primary bank, and then try with the other banks that you don't have relationship with. Stay away from these other guys unless its a means of last resort.

You would be surprised how far a good credit score and reliable employment can go even if the income isn't super high.
I’m pretty sure that OP must have sorted this out by now as their enquiry was about 2 years back.
Isn't it great to live in the 21st century where deleting history has become more important than making it.
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VishnuS47257 wrote: Should I or can I use my car as a collateral.
No you can’t use the vehicle as security, as that security already belongs to the bank who loaned you the money for that vehicle.
On top of it being seemingly impossible for you to obtain a loan in your current financial position, or probably anytime in the near future, it’s a horrible idea to borrow money for something like a wedding.

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