In Canada, different types of personal loans and lines of credit include fixed-rate and variable-rate options, as well as secured and unsecured loans. Specialized products are also available, such as debt consolidation loans and student lines of credit. Personal loans typically involve a fixed amount with a structured repayment plan, whereas lines of credit provide flexible, ongoing access to funds up to a set limit. Whether you're looking for predictable payments or flexible borrowing, you can choose the options that best fit your needs.

Qualifying for a personal line of credit or personal loan depends on several factors, which can include your income, employment, credit score, and details about your expenses and existing debts.

In Canada, credit scores range from 300 to 900

Here are some key factors lenders consider:

• A stable income to ensure you can make repayments
• A good credit history to prove your responsible borrowing and repayment habits
• A manageable debt-to-income ratio to show you're not over-extending yourself
• Verification of your identity and financial situation through documentation such as paystubs, tax returns, and identification.

By meeting these requirements, you can increase your chances of qualifying for a personal line of credit or personal loan with favorable terms.

You can apply for an RBC personal loan or line of credit online through your RBC Online Banking account, by phone at 1-800-769-2511, or in person at an RBC branch. If you're an existing RBC Online Banking client, applying online is the fastest option. When applying, have your employment and income verification, proof of address, and client identification ready. For personalized guidance, you can book an appointment with an advisor or visit a branch to complete your application.

Yes, you can apply for a personal loan or line of credit with a cosigner. This can support your approval process if you have a limited credit history or need to strengthen your application. Here's how it works:

• A cosigner is someone who agrees to share legal responsibilities for the loan with you.
• Both the credit and income information (including credit score, income, and debt-to-income ratio) of you and your cosigner are assessed by the lender, which can increase your chances of approval. This may also help you secure a lower interest rate.
• It's a great option for those who might not qualify on their own, such as recent graduates or newcomers to Canada.

A collateral is not always required to apply for a personal loan or line of credit. Collateral security is taken when available to strengthen a loan application or to provide preferred pricing to the client but does not solely determine loan approval. Collateral can be liquid security, moveable assets, or real estate. Therefore, whether collateral is needed depends on the type of personal loan or line of credit product and the specific transaction structure.

Choosing between a personal loan and a line of credit depends on your financial needs and how you plan to use the funds. Both options offer access to money, but they work differently in terms of funding, repayment, and flexibility. Here’s a clear breakdown to help you decide:

How you get the money:

• Line of credit: You get ongoing access to funds up to a pre-approved limit, like a credit card.
• Personal loan: You receive a one-time lump sum upfront.

Repayment structure:

• Personal loan: Fixed monthly payments over a set term (e.g., 1–5 years), with a clear payoff date.
• Line of credit: Flexible repayment—often minimum interest-only payments, allowing you to pay at your own pace.

Interest charges:

• Personal loan: Interest applies to the full amount borrowed from day one.
• Line of credit: Interest is charged only on the amount you actually use, not the full credit limit.

Reusability:

• Personal loan: Once repaid, the account closes. You’d need to reapply for additional funds.
• Line of credit: Funds reload automatically as you pay down the balance, no reapplication needed.

Best for:

• Personal loan: Large, planned expenses (e.g., debt consolidation, home repairs).
• Line of credit: Ongoing or unexpected costs (e.g., emergency funds, fluctuating needs).