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Installment Loans Canada Options
2 Oct 2019

Why Installment Loans Canada is the Best Option for You

There is no better deal than a loan that allows you to borrow in one lump sum and make payments over time. That is the kind of deal that you will get with installment loans Canada.

Installment loans Canada go a long way in ensuring your day to day expenses and emergencies are taken care of without delay. Once in a while, you may fall short of cash and only a loan can save the situation. However, taking out a loan that you are not sure you will be able to repay by your next paycheck is not a good idea. This is where an installment loan comes in handy. The loan has a repayment plan of up to thirty years depending on your agreement with a lender. Moreover, personal installment loans, in particular, help you sought any financial constraints you might be going through real quick. This is because the loan is lent to you without involving a third party. When a direct lender is involved, greater freedom is guaranteed.

Why installment loans Canada are the best option

  1. The loans have larger borrowing options- You may need to finance an expensive purchase. It can be a car or a business asset. An installment loan makes it possible for you to effortlessly purchase that dream car you have been eyeing for the longest time.
  1. Longer repayment terms- a loan that requires you to clear your debt by the next paycheck is quite frustrating. Installment loans save you the worry of wondering how you will pay off your debt straight away. The repayment terms range from a few months to several years. Enough period to comfortable clear your debt without having to dig deep into your pockets.
  1. Fixed monthly payments- Knowing the specific amount you owe a lender every month makes budgeting easier. The monthly payments for installment loans are always fixed and, therefore, no unexpected charges during the repayment period.
  1. The application process is easy- You may decide to apply for the loan online or in person. Whichever way you find comfortable; the process is very easy. Not only is it easy but also very fast and you will be done within no time. If the application process is online, you get to do it at the comfort of your home or office. If it is in person, it is as simple as filling the application form and providing supportive documents as required by a lender.
  1. Money same day the loan is approved- lenders of installment loans understand the urgency with which the money is needed. Therefore, a lender will not keep you waiting hence immediately transfer the money to your bank account the moment the loan is approved.

Installment loans for bad credit

An imperfect credit score should not hinder you from applying for an installment loan. Several local banks, credit unions, and online lenders do not mind approving your installment loan despite having a not so perfect credit score.

The installment loan for bad credit may be secured in the sense that you will have to pledge an asset before getting the loan. The loan may also be unsecured hence you will not have to put up collateral to be approved for the loan. In most cases, unsecured installment loans Canada will only require you to show proof of income. The bad credit installment loans are just like any other installment loan save for a few features which include;

  1. Higher interest rate- The fact that you have bad credit means that you might not repay your loan in time or you may completely fail to pay off your debt. Lenders, therefore, charge a higher interest rate if you have bad credit to ensure that the money they lend to you is somehow recovered along the way.
  1. Higher additional fee- This is the cost you may have to pay for having bad credit. A lender charges you a higher fee than you would have been charged if you had a perfect credit score.

Types of installment loans for people with bad credit

Below are some options for you if you are thinking of applying for an installment loan but your credit score is not looking so good.

Students loans

If you are a student, you spend most of your time in a classroom than you do working. There is never enough time that allows you to build your credit history. Even so, you will need a student’s loan that will help see you through college. The bad credit student’s loan helps any student with a desire to receive education but cannot afford. The loan not only helps settle your college fees but also build your credit history once you start repaying. If you repay the loan every month in time, you eventually end up having good credit.

Mortgage loan

Have you been desiring to own a home? Building a home can be an expensive undertaking especially if you are always running out of cash way before your next paycheck.

You can request for a mortgage loan from either a formal or informal lender to help finance the purchase of a new home. The loan is later repaid in installments, either monthly or yearly until the full mortgage loan is settled.

Installment loans online

This is a source of quick ready cash if you need an installment loan with bad credit. As the name suggests, the application process is purely online, it would probably take just a few minutes of your time. This loan is the best option if you have a bad credit for the reasons mentioned below;

  1. A lender would less likely bother to run a credit check.
  2. You stand a chance to be approved for the loan even with bad credit.
  3. Showing proof of income is enough reason to get approved for the loan. It goes to show that you will be in a position to repay your loan in time since you are earning.
  1. Online installment loans save your credit score from experiencing further damage. This is because the loans that check your score (hard inquiry) leaves a mark on your score and can be damaging if done more often.
  1. The repayment terms are favorable and convenient. Furthermore, if a term is not clear you can contact your lender for further clarification before you finally decide to take up the loan.

Bottom line

Installment loans Canada is for any Canadian who meets the requirements of a lender. If you feel you are not amused with what a lender has to offer you can always go for another. Lenders’ terms always differ it would be in your best interest to choose the terms with which you are comfortable. The fact that you have bad credit should not be a reason to settle for the first lender who offers you a loan. You might not be in a position to live up to the lender’s requirements and that will not be doing your credit score any good. If anything an installment loan is not only meant for solving your financial constraints but also help you build your credit history in the long run.