Whether it’s for an emergency or to pay for your expenses, personal loans can be a lifesaver for many Canadians. However, the general sentiment is that you can only get legitimate personal loans from the big banks and large financial institutions. But banks are not the only or even the best financial institution to get your next loan.
One of the benefits of applying for a loan from a credit union like Innovation is that your loan is personalized to your situation. Need a loan fast? You can apply in minutes. You want flexible payment options? They are also available. You can even earn cash dividends on your loan so you’re actually earning money while borrowing money.
Credit unions are member-owned and do not benefit from putting their members in disadvantageous positions due to a personal loan. Therefore, they’re more inclined to grant you a loan that is right for your situation and that accounts for any potential pitfalls that might arise during the payback process.
Should I get a credit union loan to pay credit card debt?
Why would anyone take out a personal loan to pay off credit card debt? The primary reason is debt consolidation. Debt consolidation is the act of moving all your debt to one place so it’s easier to keep track of and manage. The other bonus of taking out a personal loan is that the interest rates on loans are often lower than the rates on a credit card. Credit unions such as Innovation can often provide great interest rates and flexible payment options that make paying off your debt much easier.
Now you understand why you might want a personal loan, but should you get one? The first step is to ask if you qualify for a personal loan. Having a good credit score and capacity to borrow will greatly increase your chances of getting a personal loan.
Secondly, you need a personal loan large enough to cover all your credit card debt. Otherwise, you are going to have to pay two loans off at the same time. Can you qualify for the loan amount you need?
And the final question you need to consider is do you have a strategy for paying off your personal loan?
If the answer is “yes” to the above, you would likely benefit from taking out a credit union loan to pay off your credit card debt. But if you’re still unsure, contact us for more information.
Who are the best providers for quick loans in Canada?
You might think big banks offer great quick loan options for Canadians. They are a trustworthy source and provide access to in-person or over-the-phone customer support.
You may also be considering an online bank or lender. Many online institutions offer better rates than their big bank counterparts and have more options when it comes to the loan amount.
Innovation, however, is one of the best providers of personal loans. The application process is quick, and you’re offered tons of flexible payment options so you’re not stuck with a loan you cannot pay back. Plus, our service has a personal touch you might not receive from other financial institutions. And you earn profit sharing cash simply by having a loan with us.
How is the total interest on a personal loan calculated?
When you take out a loan, you are charged an interest rate. Factors such as your credit score and loan amount will change the interest you are charged.
You can use a loan calculator to determine how much total interest you will be charged on your personal loan.
Discovering Credit Union Loans
The member-focused approach of credit unions makes them an excellent choice for your borrowing needs.
Remember to investigate what interest rate and extra benefits a financial institution is offering before you take out a new personal loan. Also, ask yourself if this organization has your best interest in mind or is simply trying to make money off you.
If you take these necessary steps and do your research, you are sure to find the lending process easy and helpful.
Please contact us if you have any other questions about credit union loans.