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What can I use a personal loan in Moncton for?
Research shows that just 48% of Atlantic Canadians are confident they can afford their basic living expenses over the next year, and even though Moncton is one of the most affordable cities in New Brunswick to live in (the average cost of living is $1,658 per person per month), it’s no different here. A greater proportion of the population lives paycheque to paycheque than anywhere else in Canada, and New Brunswickers are the most worried about their finances compared to other provinces.
The good news is that personal loans can be used to help with the cost of living; utilities, transport costs, rent, mortgage payments, other debt payments, groceries, child care⦠All are legitimate uses of personal loan funds.
Personal loans aren’t just for everyday costs though. Emergency expenses (like car repairs, medical bills and so on) are common reasons for taking out a personal loan, as a loan spreads the cost of an otherwise unaffordable big bill out over time.
The same is true for expenses related to big life changes. 32% of Atlantic Canadians put off important steps, like buying a house (the current median house price in Moncton is $420,000, and only 55.9% enjoy home ownership) or having kids, because of the cost. A loan can help make these dreams affordable and achievable, as few are in a position to save large chunks of capital themselves.
What paperwork do I need to get a personal loan in Moncton?
The days of long-winded loan application forms and endless paperwork are over; the rise of online loans means that, today, even traditional personal loan providers like banks offer convenient, easy-to-use online application processes. These online systems still require some documentation though, even if it is only in digital form.
You can be certain that whichever personal loan provider in Moncton you choose, you will have to prove your identity (with I.D.) and address (with a bill or bank statement), as well as details of a bank account in your own name.
These are the basics, but it’s possible you’ll be asked for other items too, depending on the lender and loan you’ve chosen. This can include proof of employment (e.g. a contract), proof of income (e.g. paystubs or tax records), details on your existing outgoings (e.g. 3-6 months of bank statements), or proof of ownership of assets (e.g. title for your car or home). Always check a lender’s application requirements before you begin, so you can be sure you’ve got all the necessary items.
What income do I need to get a personal loan in Moncton?
Some (though not all) lenders have rules regarding the type and level of income an applicant must have in order to be approved for a loan. However, these rules are not uniform; the types of income accepted vary, as do the levels of income.
For example, traditional lenders like banks have fairly strict criteria; they usually require full-time employment income (bad news for the third of Moncton’s residents who do not have traditional employment) and a minimum income level (e.g. CIBC’s is $17,000 per year). Given New Brunswick’s average wage is eighth amongst the provinces, this rules out a lot of potential borrowers.
Other lenders, including online and alternative lenders, don’t mind what form of income an applicant has, so long as it’s regular. This provides a borrowing option for the 6.4% unemployed, 5.4% on social assistance, and 19% retired Moncton residents, many of whom still need access to personal loans. Always check a lender’s eligibility requirements to be sure you meet them, before you apply.
What credit score do I need to get a personal loan in Moncton?
Not every personal loan relies on a credit check, but some do. The average credit score in Moncton is one of the lowest of any of Canada’s major cities, at just 640 – a full 32 points lower than the national average. And this is not high enough to meet the strictest of the credit thresholds (650) set by some personal loan lenders (the big banks).
However, most non-bank lenders accept borrowers with any score that’s considered “fair” or “good” – meaning 560 or above. And certain lenders specialize in lending to bad credit borrowers (those with a score of less than 560). So everyone has some options. It helps if you know your credit score before you start shopping for a loan, so you can be clear which lenders will work with you.
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