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Compare personal loans for good credit

How you can use your good credit score to win a personal loan with low interest rates and favourable loan terms.


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You’ve worked hard to pay your bills on time, keep your credit balance low and build up your credit history. In other words, you’ve earned your good credit score.

When it comes to a loan, having a good credit rating can get you lower interest rates, better loan terms and larger borrowing amounts. If this sounds appealing to you, read our guide to find out how to leverage your good credit score to find the best loan for you.

What’s considered a good credit score?

A good credit score generally sits between 650 and 900, but the numbers aren’t as clear-cut as you might think. Even though the two credit bureaux – Equifax and TransUnion – collect the same information to determine your credit score, there’s a slight variance in their algorithms that often results in different scores between them. This means while you might have a score of 650 with one credit bureau, it’s possible your score with the other is 640.

Compare personal loans for 2020


*While we don’t currently have any personal loans on offer for people with only good credit scores of 650 and above, the following are examples of personal loans available to those with credit scores lower than than 650.

Name Product Interest Rate Max. Loan Amount Loan Term Fees Min. Credit Score Link
LoanConnect Personal Loan
6-60 months
No application or origination fees
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LoanConnect is an online broker that matches borrowers to lenders offering loans in amounts from $500 to $50,000. Get approved for multiple loan offers from different lenders in as little as 60 seconds with any credit score.
Fairstone Personal Loan (Unsecured)
26.99% - 39.99%
6 months - 5 years
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Fairstone offers unsecured personal loans up to $20,000
Cash Money Installment Loan
6 months - 5 years
Vary across provinces/territories
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Cash Money offers installment loans up to $10,000 for AB, MB and NB residents.
LendDirect Personal Loan
19.99% - 46.93%
No end dates
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Borrow up to $15,000, based on your income and credit history, with a personal line of credit from LendDirect.
LendingMate Personal Loan
43% (British Columbia and Ontario) and 34.90% (Quebec)
1-5 years
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LendingMate offers loans to Canadians with poor credit with no credit checks. Guarantor required for application.
Fairstone Personal Loan (Secured)
19.99% - 23.99%
3-10 years
Varies by province
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Fairstone offers secured personal loans up to $35,000.
Alpine Credits Home Equity Loan
10.00% - 22.99%
Up to 60 months
Between 5% - 8% of your APR will cover closing and admin fees.
Check eligibility
More Info
Alpine Credits offer home equity loans in amounts from $10,000 to $500,000. Must be a homeowner to qualify. Check eligibility for this loan through LoanConnect.

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What makes up your credit score?

The credit bureaus don’t give a specific breakdown of the exact factors that affect your credit score, however, some of the main factors usually include:

  • Payment history. Paying bills on time positively affects your credit score.
  • Delinquencies. Declaring bankruptcy or having a collections agency come after you will damage your score.
  • Balance-to-limit ratio. Running your balances up to your credit limit, or over 50% of your credit limit, can negatively affect your score. Try to keep your balance-to-limit ratio around 30% or less.
  • Recent inquiries. Applying for a new loan requires a hard pull, which means your score will take a negative hit of about 5 points.
  • History of accounts. The length of time that you’ve had your accounts open affects your credit score. The longer you have accounts open, the more positively your credit score will be impacted.
  • Variety of credit accounts. Your credit score will be affected by the balance of credit card and loan accounts in your name. Having a mix of products positively impacts your score.
  • Too many accounts. Having too many accounts is viewed negatively since this could be a sign of financial troubles.

Applying for too many loans

Applying for multiple loans at the same time can lower your credit score by a few points, which could ultimately impact the interest rate that you’re offered on subsequent loans. In order to maintain a good credit score, keep your inquiries to a minimum by applying for loans for which you meet the eligibility requirements. In addition, always make your loan repayments on time.

What do lenders look for in borrowers with good credit scores?

When considering your application for approval (or rejection), lenders usually look at the following:

  • Your credit score. With 650 as the “magic number”, you will usually need a score of this number or higher to be eligible for a good credit personal loan.
  • Your ability to repay your loan. Lenders will look at your current financial situation. They will consider your income and outstanding debts, which will ultimately use those to tell if you’re capable of repaying your loan.
  • Your debt-to-income ratio. When you apply for a loan, the lender will calculate your debt-to-income ratio. If you have multiple credit card payments, a mortgage and a car payment, your debt-to-income ratio will be high. Since so much of your income goes toward debt already, a lender is less likely to approve your application. On the other hand, if you only have a mortgage and a single credit card payment each month, your debt-to-income ratio will be low and lenders will view you as a better applicant. Most lenders prefer applicants with a debt-to-income ratio of 35% or less.

How does my credit score affect my application?

A good credit rating opens the door for better financing.

While your credit score doesn’t represent your entire financial situation, it can significantly affect many areas of borrowing, including the interest rate you’re offered and the total amount you can borrow.

With that said, lenders place a lot of emphasis on your credit score because it’s a reflection of your ability to meet your financial obligations. Higher scores mean higher reliability, which means less risk for the lender. If you’re less of a risk, your interest rates aren’t going to be as high, and you’re going to have a better chance of getting a less expensive loan.

What types of loans are available to people with a good credit score?

If you have good credit rating, the sky’s the limit when it comes to the loans you qualify for. You should be eligible for a wide variety of loans, including:

  • Unsecured personal loans. Unsecured personal loans can be used for just about any legitimate purpose. They don’t require collateral, and you may be eligible for loans up to $35,000, or sometimes higher.
  • Secured personal loans. A lender may be willing to lower the interest rate on a loan even further if you’re able to offer up collateral. The collateral gives the lender security by having something of value that can be collected in case of a default. Your car or home equity is usually used as collateral.
  • Auto loans. If you own your car outright, you could potentially take out an auto title loan. Since your vehicle is used as collateral, you stand to lose it if you don’t make your repayments on time. You can generally use a car, boat, RV, or motorbike as collateral for an auto title loan.
  • Peer-to-peer loans. Lower rates, flexibility, quick turnaround and fewer fees are some of the benefits that come with borrowing from an investor through an online marketplace. You usually need excellent credit to get a P2P loan.
  • Start-up loans. When you have a good credit score and a solid business plan, you can fund your new business venture with a start-up loan. Before taking out a loan, look for any grants available to new business owners in your province or territory.
  • Business loans. Already have an established business? Take the opportunity to grow your business with a little extra capital. Buy equipment, renovate a storefront or even expand using the funds from a business loan.
  • Debt consolidation loans. If you have debt spread across several different loans, lines of credit and credit cards, you may be able to place them all under one loan, possibly with a lower interest rate. This means you only have to make one repayment to one lender.

How do I compare my loan options if I have a good credit score?

Before you take out a loan, be sure to compare different lenders and loan options. When making your comparisons, consider the following factors:

  • Interest rate. The interest rate is one of the easiest numbers to compare when looking at different loan options. Good credit usually means you’ll find lower interest rates, but some providers may offer significantly better rates than others.
  • Fees. Consider any additional fees charged by the lender. Extra fees may include administrative fees, late fees and early repayment fees.
  • Maximum loan amount. It’s important to consider how much you actually need to borrow versus how much you’re actually allowed to borrow. Only borrow as much money as you need since you have to pay interest on it.
  • Loan term. A shorter loan term leads to lower overall repayment costs but higher repayments each week or month. On the flip side, you can have lower repayments but end up paying significantly more in interest rates and fees if you opt for a loan with a longer term.
  • Turnaround time. While fast turnaround times are available from some lenders, they may come with added fees or higher annual percentage interest rates (APRs).
  • Requirements. Your eligibility is often based on more than just your credit score. Check with lenders you’re interested in to make sure you meet all of the necessary eligibility requirements before you apply for a loan.

How can I improve my credit score?

If you’re looking to improve your credit rating, consider trying the following:

  • Pay off open balances. It’s important to close your balances by paying them off before taking out another form of credit, whether that’s a new card or a loan. This will improve your credit and show lenders you’re able to fulfill your financial obligations each month.
  • Keep open balances low. Once you’ve paid down your balances, try to keep them low. Staying below 30% of your credit limit is the advised threshold by many experts.
  • Have some open balances. Your credit utilization ratio, which is the amount of credit you have open versus the amount you are currently using, looks better when you’re using less than 30% of your open credit.
  • Avoid opening new accounts. Opening new accounts before you improve your credit score means you’re opening accounts with potentially unfavourable interest rates and loan terms.

Bottom line

Having a good credit score can help you get loans with better terms and lower interest rates. Furthermore, you’ll usually have many more loan types available to you, which means you can compare a wider range of loans and lenders.

Keep in mind that taking out any kind of loan is a big financial decision and should be considered carefully.

Do your research, compare personal lenders, talk to friends and experts – and sleep on it before signing any contracts. By making sure you’re getting a loan that suits your budget, you can protect and possibly even improve your credit score.

Frequently asked questions about good credit personal loans

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