Change how you think about borrowing money
KEY TAKEAWAYS
✔ People have many different cultural attitudes and ideas about what it means to borrow money and take on debt.
✔ As a newcomer to Canada, borrowing is a safe and effective way to build your credit history.
✔ One of the many benefits of getting a loan is that you can borrow a set amount, for a fixed period of time with one predictable payment.
Across generations, your life experiences have shaped how you view money issues as well as how you feel about borrowing and taking on debt in a new country. Whether it’s the fear of owing money, paying interest or concerns that people may think you are not financially stable, borrowing in Canada is a safe and effective way to show banks that you are good at managing money.
Why borrowing money is a good idea
Helps you get what you need
Borrowing helps buy large ticket items like furniture, education and training, or a family vehicle when you may not have enough money saved. It’s common for people to have more than one loan at a time. For example, you may have a loan that lets you own a vehicle that you use to get to work. That’s an example of “good credit” because you’re using the money you borrowed to help you earn a living. At the same time, you might have a debt consolidation loan with one monthly payment which lets you pay off other high-interest debts, like credit cards.
It builds a good credit rating
Your credit history does not travel with you, so you’ll need to build one in Canada. It’s actually considered to be a good thing when you borrow money, make the payments on time and pay off what’s owed. It tells lenders that you can manage money well. Every on-time payment you make and every loan you pay off is helping you build good credit.
Good credit makes it easier to borrow again
Over time, you may want access to different kinds of credit and the ability to borrow larger amounts of money, like getting a mortgage to buy your first home. Having good credit can help you qualify for more money at better interest rates.
The benefits of getting a loan
Instead of asking your friends or family for a loan, borrowing from a bank or other Canadian lenders has many practical advantages.
Only borrow what you need
Personal loans let you borrow a fixed amount of money so you know exactly how much you need to pay back, including the interest. In Canada, lenders must tell you the total cost of borrowing money upfront. This includes the principal amount (what you borrowed), plus interest (the interest rate you agree to), and any fees. Here’s an excellent 5-minute read that explains the “cost of borrowing” in detail.
Set length of time with a set payment amount
The length of a personal loan at easyfinancial can be 9 to 84 months and most lenders will let you choose weekly, bi-weekly, bi-monthly or monthly payments. In addition to knowing exactly what you owe, you can customize your payments to match when money is coming in from employment or other sources.
Pay it off anytime without penalty
Some lenders may allow you to pay down the loan or pay it off at any time without penalty. It’s a good way to become debt-free sooner.
You’re protected from the unexpected
Life is unpredictable. Sometimes, things outside of your control can get in the way of paying back a debt for just a little while or even forever. Most Canadian lenders offer some kind of loan protection that is designed to help you make payments when you can’t due to job loss or illness.
Borrowing for the first time in Canada
Borrowing is a good way to build a strong financial future in Canada for you and your loved ones. At easyfinancial, you can borrow what you need when you need it with loan amounts from $500 to $100,000 with no credit history required. To find out whether a personal loan might be the right option for you, simply give us a call at 1-888-502-3279, apply online or drop by one of our 400+ branches across Canada.
Disclaimer: This content is intended for informational purposes only and does not constitute financial advice on any subject matter.