How do I know if a personal loan lender in Toronto is reputable?

Ensuring you're working with a legitimate lender is important before proceeding. When you're examining a lender, make sure of the following: It's registered as a business in your province or territory. Has a physical address for a head office, a phone number and an email address for customer service. If a lender is missing this key information, this may be a red flag. Doesn't offer "guaranteed approval." Steer away from any lenders promising a guaranteed approval personal loan. No trustworthy and reliable lenders can guarantee a personal loan, especially if you have bad credit in Canada. Legitimate lenders evaluate a borrower's financial situation before approving, even if they offer an instant decision. Read more about personal loan scams .

What credit score do I need to apply for a personal loan in Toronto?

That depends on the type of lender you'd like to work with. Major financial institutions like banks and credit unions in Toronto will want to see good to excellent credit (above 660), while online lenders can approve personal loans even if you have fair credit (560 to 659) or bad credit (below 560). Read more about what credit score is needed to qualify for a personal loan .

Can a personal loan improve my credit score?

Yes, it can, especially if you stay on top of each loan repayment and use your loan as a golden opportunity to rebuild your credit. If your credit is in bad shape, you can repair the damage by making loan repayments according to schedule over time, showing lenders you're a trustworthy borrower.