Get the best personal loan rates in British Columbia. Then relax.

There is no shortage of options when it comes to getting a personal loan in B.C. In the past, you’d have to walk into a bank branch and sit down with a representative.

Now, there are plenty of online options in addition to the traditional ones. The benefit of getting a personal loan online is that it’s fast and convenient. No need plan around the bank's limited hours. You can apply for a loan online 24/7.

That said, there are pros and cons to each of these routes, and it's important to know what you're signing up for when you apply for a personal loan.

First, depending on the type of loan you’re applying for, the process can be a longer one or a quick one. An unsecured loan usually has a faster approval process with less paperwork, because the loan isn’t backed up by collateral. However, these tend to be smaller loans with higher interest rates.

On the other hand, secured loans involve more paperwork and take more time, because the lender will have to verify the value of the asset you’re putting up as collateral — though secured loans tend to offer lower interest rates and allow you to borrow larger amounts.

Now, let’s take a look at the various lenders and what you should know.

Private lenders.

What they are: Many private online lenders specialize in lending to people with poor credit (those with a credit score below 574). Banks will often deny their applications, viewing them as higher risk. As a result, interest rates from private lenders tend to be higher, though they will often be more willing to lend to those with no or bad credit histories.

What to expect: If you have bad credit and you’re seeking out a loan with an alternative or online lender, expect to pay higher interest rates. However, many of these lenders also offer loans to those with good credit, allowing you to get competitive interest rates and compare your options.

What you need: Depending on the type of loan you’re getting, you should know or have the following items:

• Your credit score.
• A valid bank account with a Canadian financial institution.
• A working email address.
• Your personal information (address, employer, etc.).
• You must be a Canadian citizen or permanent resident.
• Information about any asset you’re putting up for collateral (such as a vehicle invoice or assessed price).

Bank loans

What they are: Bank loans are both secured and unsecured personal loans mainly geared towards those with fair or better credit scores (starting at 575 and above). The benefit of a bank is that they have branches you can walk into if you prefer to handle financial matters face-to-face.

What to expect: Banks offer loans online, over the phone, or through a physical bank branch. If you have fair, good or excellent credit, you can expect to qualify for a loan at these institutions. Unfortunately, banks are reluctant to lend to those with bad or no credit histories.

What you need: The information requirements are the same as above. Make sure to bring the following:

• Your credit score.
• A valid bank account with a Canadian financial institution.
• A working email address.
• Your personal information (address, employer, etc.).
• You must be a Canadian citizen or permanent resident.
• Information about any asset you’re putting up for collateral (such as a vehicle invoice or assessed price).

There are two main types of personal loans available, and there are pros and cons to each.

Secured loans

These types of loans require you to put up a valuable item that the lender can repossess if you fail to pay your loan on time. This can be a home, a car, or anything else that the lender deems of sufficient value. These loans require more paperwork, however, and take longer to be approved. The lender will take time to verify that you own the asset and that it’s worth what you say it is.

Unsecured

These loans are not backed by any asset, but as a result, they are often for smaller amounts and carry higher interest rates. However, their approval process is faster. If you need money quickly, unsecured loans are a good bet.

Other loan types:

Fixed-rate loans

Fixed-rate loans carry the same interest rate for the length of your term, from when you get your loan to the time you pay it off. While interest rates for fixed products tend to be higher, they offer you security from fluctuating rates that can increase your regular payment.

Variable-rate loans

Unlike fixed loans, variable loans can have changing interest rates. This will benefit you when interest rates are falling but will cost you when they rise. The benefit to these products is that they start off with lower rates than their counterparts, and if you’re comfortable with risk, they offer the potential for paying less interest in the end.

Debt consolidation loans

These are personal loans designed with the goal of getting all of your different loans, such as credit cards or car loans, into a single loan. They can offer better interest rates than what you’re currently paying and make regular payments easier to manage.

Co-signer loans

These loans involve having another person registered on the loan, potentially allowing you to borrow more money and with lower interest rates. That’s because the lender now has a guarantee that they'll get their money back: if you can’t pay the loan, they have someone else they can go after to get their money (the co-signer).

Payday loans

According to Consumer Protection B.C., these are short-term loans that are capped at $1,500. The province has brought in new rules that mandate you can’t be charged more than $15 for every $100 you borrow, which includes charges and fees. A loan also cannot be more than 50% of your paycheque. Finally, these loans must be repaid within 62 days.