What Does It Take to Obtain a Loan When You Need One

Loan qualifications

Lenders of all types set qualifications that applicants must meet in order to be considered for loans. The good news is that some lenders are willing to work with people who have experienced a few financial setbacks in the past. If you fall into that category, don’t assume there are no Alberta loans that you can receive. As you begin the search, remember that lenders who place less emphasis on credit scores will still need certain types of information. Have the following ready before you prepare an application.

Verifiable Sources of Income

No lender is likely to approve an application unless you can provide confirmation that you have one or more sources of steady income. While many people think that means money earned from a job or from being self-employed, those are not the only sources that lenders accept. Most provide lists of what sort of income sources they consider acceptable to those who apply for one of their loans in BC.

For example, did you know that funds from a Canadian Pension Plan are accepted as verifiable income? The same is true for maternity leave benefits, Old Age Security, private pension plans, and employment insurance. There may be other forms of income that the lender will accept. When it doubt, ask and listen closely to the answer. Assuming one or more of your income sources is considered sufficient to receive a loan, you’ve passed the first hurdle.

Proof of Identity

You will need to provide proof that you are the person you claim to be. This will often involve providing documentation that confirms your identity. Some sort of official identification like a vehicle operator’s licence is often a good start. Some lenders will accept any form of identification that includes a photograph, like a college student ID. Most lenders are happy to provide a list in advance of what sort of documentation they will need to confirm an applicant’s identity.

Verification of Age

You must be of legal age in order to obtain a loan. While some lenders may approve a loan for someone under the age of 18 if they have a co-signer, that is not always the case. Just as you will need to provide proof of your identify, be prepared to submit documentation that confirms your age.

Confirmation of a Permanent Address

Residents are eligible for many different types of loans. One of the ways that you confirm your residency is by providing a permanent address. This must be the physical address where you live. It can be a home, an apartment complex, or any type of living facility. The key is that there is a physical location where you live permanently. If you have any questions regarding residency requirements, lenders like Magical Credit are happy to answer them.

Proof That You Have a Bank Account in Good Standing

You will need an active bank account that’s currently in good standing. The means the bank has not placed any limitations on your ability to use the account. There are some lenders who will require that you have an active checking account. Others will accept a checking or savings account.

Confirmation that you have a bank account you can use freely is essential. Most lenders will deposit the funds from an approved loan directly into that account. You will also need a checking account that you can use to remit loan payments through an online interface or by mailing a cheque to the lender through the post.

Some lenders will accept checking accounts related to institutions that operate online only. Others may require an account with a more traditional institution. It never hurts to check with the lender to ensure your bank meets their qualifications.

How would a loan make a difference for you? If there’s something that you need to accomplish, the right loan can make things a lot easier. Visit Magical Credit today and learn more about the types of loans offered and how you can qualify for them. The right solution will mean that the money is in your hands quickly and you can repay the loan using terms that are easy to manage.

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