Personal loans are on the rise in Canada. People all around the world turn to personal loans for a lot of different reasons, and Canadians are no different.
But what is it about personal loans that make them increasingly popular choices?
A personal loan is money borrowed from a bank, credit union, or other lender that you are able to pay back in fixed monthly payments, and they’re usually “unsecured,” or not backed by collateral like your house.
People are usually able to use a personal loan for any reason. Some people use them to consolidate their credit cards and improve their credit by consolidating that debt. Others may turn to a personal loan to fund a startup, or to take care of other bills and debt while they’re focusing on getting a new business off the ground.
Then, of course, there are unplanned expenses that people might use a personal loan to cover. An unexpected medical bill is a common reason people find themselves short on cash or in debt. Or something that you need and use every day, like your car, may suddenly need pricey repairs or need to be replaced entirely.
There are a lot of advantages to turning to a personal loan to take care of some of those things. The unsecured aspect of it is a definite bonus. Personal loans can really help you better manage your finances, or just get out of a debt hole before you’ve dug yourself too deep. The use of personal loans is flexible, which is an attractive characteristic.
Companies like SkyCap Financial understand that anyone can end up in financial situations that they cannot control and that can impact their credit in a negative way. They want to work with customers on their financial needs, and not just turn them away based on credit history like other lenders may choose to do.
Personal loans from lenders like SkyCap Financial offer a more personal lending experience than some bigger lenders, for anyone who needs a loan to get a little financial help.
Some companies even strive to go beyond just handing a client a loan once and being done once it’s paid back. SkyCap Financial, for instance, offers a program called SkyCap University to help clients improve their financial situations, with offered courses teaching the basics of money management. It’s about creating a lasting impact, and not only helping clients in a temporary financial situation.
There are a lot of reasons why Canadians may choose to apply for a personal loan. And while there are a lot of lenders out there, certain ones go above and beyond to make finance management a life skill, even when a lending relationship has concluded.