How we assess your loan application

When you apply to us for a loan, we will look at your application and your personal information to help us find out

• whether it would be responsible for us to lend to you
• the appropriate level of credit to offer you

We also look at your credit report and determine your credit-worthiness. A credit report informs us of your past performance in meeting your financial obligations. To learn more, see our webpage about credit reports.

The entire process usually takes no more than three days.

Your character is an important consideration

If you've never had a loan, charge account or credit card, you won't be on file at the credit bureau. This makes it difficult for us to assess your credit-worthiness, since no history or track record is available.

Your credit history is an important factor, but we also make some judgments about you as a person. In doing so we consider whether you

• have good character
• are a responsible person
• manage your chequing account well
• have some savings put away

These are all indicators of some sense of financial management.

We also consider your ability to repay the loan. Collateral or security on the loan will be a consideration as well. If you can offer good security, the risk is reduced or eliminated for us. Taking all of these factors into consideration lets us make a sound decision about lending you money.

You have options if your application is turned down

If, for some reason, your application is declined, treat it as a learning experience.

Ask why. It may be that the loan wasn’t approved because you already have too much debt. In that case, we most likely feel that one more monthly payment will cause you to reach your breaking point. This may be a disappointing outcome, but it’s usually for the best in the long run.

Reassess your situation. If your loan wasn’t approved, it’s best to reassess your situation and, perhaps, wait until you’ve reduced some of your current debts before taking on more.

Get help from a friend or relative. If your loan application was rejected because of lack of collateral, you might want to consider having a relative or close friend co-sign the loan for you.

But don’t expect to get an automatic "yes" to this request. Co-signing a loan is not to be taken lightly. A co-signer agrees to take on all the responsibilities of your loan in the event that you are unable to meet the monthly payments. So, your co-signer will want to be certain that you are capable of handling the loan and that you are honest and trustworthy.