PERSONAL FINANCE BLOG

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BC Loans Review
22 Sep 2018

BC Loans

Payday loans are extremely convenient and even necessary for some people, but they don’t meet everyone’s needs. What if you need more than what they’ll give you as a first-time borrower, or you can’t pay everything back right away? BC Loans provides loans that are more generous in both total amounts and repayment periods, letting you bypass all those pesky barriers.

Don’t settle for tiny payday loans – get a something a little more substantial with a process that puts your financial stability first.

You are interested if

You need more than $100 but less than $1000 and you need it quickly.

 

Key Points

Brief Description BC Loans offers micro-loans that, while still small, are larger than what is commonly available to first-time borrowers, and with a longer repayment term on top of it.
Limits and Deadlines You can get a small loan of between $500 and $700 and have up to 3 months to pay it back.
Urgency If you submit all the necessary documentation on time, you can get your funds sent off to you that same day.
APR Range Loans are subject to interest rates between 28% to 32% depending on individual creditworthiness.
Closing/Origination Fees Each loan extended is subject to a broker’s fee, but this cost varies depending on the specifics of that loan. Applicants will be informed as to what the fee will be in their case before they agree to the loan.
Early Payment Fees None – this is part of BC Loans’ commitment to lending with no hidden fees. They even recommend that you pay more than the minimum required amount each month to pay off your balance more quickly and save on interest fees.
How to Contract the Product Applicants can find all the forms they need to submit online on BC Loans’ website. It doesn’t take long at all to fill them out, though the full process may be lengthened by the need for extra documentation.
Main requirements You must be a Canadian citizen at least 18 years of age, receive at least $1,200 a month from either working a job or collecting employment insurance benefits, be paid by cheque or direct deposit in a bank account you have had for at least 3 months, have few to no other active short-term loans, not be about to go into bankruptcy, and not have a history of incurring non-sufficient funds fees. To prove all these things, you’ll need to either use their paperless application system OR provide one piece of government photo ID, proof of residence, your last pay stub, 90 days of bank transaction statements, and a pre-authorized debit form or void cheque.

This particular lender does not accept income from many alternative sources such as pensions and CPP, disability payments, student loans and even self-employment, so be sure that you aren’t factoring any of these into your calculations when you quote your income on the application.

About BC Loans

Main Features

BC Loans provides loans that are on the smaller side of overall average loan ranges, but the way they do it is fairly unique. Instead of limiting first-time borrowers to incredibly small amounts, they allow access to sums of at least $500 right away. They also lengthen the repayment period considerably – they give you 3 to 5 months to repay, more than triple what is usually offered. Unfortunately, these loans can be somewhat exclusive in nature; applicants will have to meet an extensive list of requirements in order to be considered. This level of scrutiny is more common with far larger loan amounts or for those with a specific intended purpose like business loans, but this is ultimately done in the name of security.

Credit checks are not part of the default application process at BC Loans, but if a customer happens to have good credit, they can request that one be done in order to be given permission to borrow without needing a surety (sort of like a co-applicant, this is a person who agrees to pay off your debt in the event that you can’t or won’t do so yourself – some of these loans may require that you find such a person). Your credit must be over 700 to use this option, and you should note that your score will dip slightly in the short term as a result of the hard credit pull that will take place. Also, if you ask for this check and don’t pass it, you will not be eligible to borrow any amount from BC Loans, with or without a surety. Further, passing the check does not exempt you from their other requirements. Only ask for it if you know you can easily pass it!

How Does It Work?

Like most lenders nowadays, you can borrow from BC Loans directly online using their online forms. These only take a few minutes to complete, after which time you’ll be prompted to provide some documentation for verification purposes. To make their application process go a little more smoothly, BC Loans has implemented their paperless application system, which will verify all of your relevant information electronically and without the need for any physical documents or scans of the same. To do this, you must be willing to divulge select pieces of your banking information to them. This does not allow BC Loans access to any user functions on your account and thus poses a low security risk with minimal fraud potential. However, it will still permit them to have intimate contact with your bank account information, and there is always some risk associated with such a thing.

BC Loans has strict policies regarding unpaid debts that prospective borrowers should know about before applying. If you know you are going to miss a payment, they ask that you call them at least a day in advance to provide sufficient warning. Each payment delayed in this way will result in a $25 administration fee being added to your account. This is not preferable for many borrowers, but it is still less than the $45 non-sufficient funds fee that would be applied in such cases when the borrower did not call. Should you default on your loan, it will continue to accrue interest at a rate of 32% a year. After continued non-payment, your debt may be handed to a collections agency for more intensive procedures to get you to repay. Loans of this size and with this long of a repayment period shouldn’t be too hard to stay up to date on, but as always, never borrow more than you can reasonably afford to repay.

BC Loans does offer loan renewal services depending on the frequency at which you get paid; you can renew when 2 payments are left if you are paid weekly, with 1 left if you are paid bi-weekly or bi-monthly, and when your loan term is finished if you are paid only once a month. These limits are in place to ensure that borrowers do not become bogged down by their loans and must make their best efforts to get by without renewal services until the right amount of time has elapsed.

Conclusions

BC Loans provides a much-needed solution to fill in the gap between payday lenders and installment lenders. They combine the best parts of both to make a product that can give clients in need the flexibility they are missing in their financial lives. It’s important to note that $500 can do a lot more to improve your life or solve a crisis than $100 can (for some, this can even cover relatively large expenses such as a rent deposit of a round of holiday gifts), making the higher offer amounts alone very useful to some individuals. When you add in the benefits of being able to space out your payments over up to 90 days instead of the usual 14 (giving you both more time to accumulate money and smaller payments to make in the meantime), it’s easy to see why someone might choose these loans over what they would typically have access to.

Beyond that, the way they handle credit scores is also another point in their favour. Their optional credit check policy allows you to be rewarded for good credit if you happen to have while also not punishing applicants who aren’t as fortunate. While most lenders prefer to cater to one side of the population or the other, you can benefit from doing business with this lender no matter what your credit score might be.

That said, if you want access to these attractive loan offers, you’ll have to put up with quite a lot of hassle beforehand. BC Loans’ requirements are extensive and strict, and many potential customers will have to turn away from this company due to an inability to meet these standards. This includes many of the people most vulnerable to a personal financial crisis, such as seniors and the disabled who typically rely on income from sources other than a job. The less onerous terms of these loans would be extremely helpful for them, but the nature of the way in which they get their money means they will rarely qualify for them regardless. It’s a shame, but excluding these people does allow BC Loans to mitigate their level of lending risk and better serve the customers from whom they do accept applications.

Further, depending on how you choose to apply, you may be looking at a lot of administrative work just to be considered for your loan. BC Loans does frequently tout the many benefits of their paperless application system, and using it will indeed make the process nearly effortless. If you choose not to use it, though, you’ll be dealing with a relative mountain of paperwork in order to check off every box on their requirements list. Given that the paperless system does pose slight security concerns, this is not a small drawback. However, even though the work required truly is rather large in comparison to what is required from other lenders like this, it’s still not a bad trade for the extra convenience and financial slack it can buy you.

BC Loans: Providing the Loans Customers Want

BC Loans is a large online lender with thousands of customers. Despite their name, they serve all of Canada, not just British Columbia; they are based in Vancouver, BC but operate entirely online. They can be reached by email or phone during normal business hours every day during the working week, and they even run their own blog to demonstrate how committed they are to helping customers develop better financial stability. They state numerous times in their promotional materials that they are also committed to responsible lending and ethical business practices.

What We Think

BC Loans is a unique lender with a lot to offer their customers, even if that sometimes means putting up with a longer and more intensive application process. It might not be very fun to have to run down a long list of stipulations to check if you’re even eligible and then round up the papers you need to prove it, but there’s a reason they ask for so much. It’s a good sign that shows how determined they are to only lend to those who they think can actually afford to borrow – in other words, they don’t want you to have a hard time paying back your loans any more than you do.

Even if their process can sometimes be a little demanding, their immediate cost to the borrower is significantly less than is typically seen with these kinds of loans. If getting the loan would not be affordable for you without the extra term leniency this lender gives, the choice is simple: being financially responsible is always more important than being carefree. However, if that extra breathing room won’t make or break the loan viability for you, you might choose to look around for other lenders with an easier application process.