For many reasons, most of which are out of our control, we often find ourselves in tight financial dilemmas. Despite our best efforts towards being financially stable, it is nearly impossible to be completely immune from these situations. In this dissolute situation, you are bombarded with many financing solutions, each promising to make your situation effortless. However, as with all things, the devil is always in the details. With that said, one solution sticks out above the rest, bad credit installment loans guaranteed approval Canada.
What are Bad Credit Installment Loans?
You find yourself in a tough financial situation maybe your car breaks down or you have urgent medical bills. What do you do? The obvious answer is to take a loan. However, what happens if you have bad credit and cannot afford to repay a loan in one lump-sum? That is the gap filled by bad credit installment loans. These loans are designed for people who may have bad credit but need fast cash and cannot afford to repay it in a single lump sum. The loans have a fixed interest rate. They are also repaid in a series of bi-weekly and monthly payments where each repayment includes the interest rate and the loan principal. In comparison with other solutions, bad credit installment loans offer more convenient terms.
With that in mind, here is an overview of other benefits of bad credit installment loans.
Benefits of Bad Credit Instalment Loans Guaranteed Approval Canada
You Can Access More Funds
Other loan options such as short term payday loans have strict limits as to how much a person can borrow in different states. The limit is averagely several hundred dollars. Depending on the nature of your emergency, payday won’t be of much help particularly if you need a significant amount of money. Bad credit installment loans, on the other hand, come with much larger average loan amounts. Even though the amount varies across states and from person to person, it relatively sizeable.
Lower Interest Rates
In comparison to other loan options, bad credit installment loans have a lower annual percentage rate (APR). This is an important factor when considering your options. And even though the rate varies according to specific financial situations, it is comparably low. The reason why the rates are low is that the loan repayment is spread over a larger duration. Therefore, the trade-off in all of this is that you will need to pay off the loan for a longer time. With that said, the fact that the installments are relatively lower makes it more bearable than if you had to repay the full amount in a lump sum.
If you have bad credit, trying to secure a loan can be one frustrating endeavour. Traditional lenders worship the credit score and heavily rely on it in deciding whether to approve your loan. If you have bad credit, your chances of getting approved for any amount are severely limited. However, the providers of bad credit installment loans take a more holistic view when approving loans. They apply other parameters in determining whether you can service a loan. For this reason, you are almost guaranteed that your loan will be approved despite having bad credit. As an added advantage, these loans are much easier to apply and the funds are disbursed very quickly. Among other things, this makes bad credit installment loans very attractive.
It is undeniable that bad credit installment loans guaranteed approval Canada is among the best solutions when you need a quick loan at flexible repayment terms even though you have bad credit. However, it is important to note that failure to meet the repayment terms will damage your credit score further. Therefore, before taking out a loan, make sure you have the ability to service it to the end. If you are considering taking a bad credit installment loan and are wondering which provider best suits you, let Bonsai Finance help you. Through extensive experience and powerful search software, we will guide you and help you find a provider that matches your needs and repayment capabilities. Log in to our portal today or talk to us to get started.