INSTALLMENT LOANS CANADA: GET CASH IN 4 EASY STEPS
INSTALLMENT LOANS CANADA: APPLICATION REQUIREMENTS
INSTALLMENT LOANS CANADA
Affordable Payments over a Longer Term
Installment Loans Canada
Installment loans are handy when you need a loan with a longer repayment term. A basic definition of an installment loan would be a loan repaid in installments over time. However, over the years installment loans have become synonymous to alternative loans to payday loans.
In Canada, payday loans have a repayment period of between 1-3 months, whilst you can pay off an installment loan over a longer period of time, sometimes over a period of 5 years or more. In some ways, installment loans are also associated with so-called bad credit loans. In this sense, people with bad credit who do not qualify for bank loans, but do not want to go for payday loans either, would normally go for installment loans. These are basically bad credit loans that are paid over a longer period of time.
Many Loans are Installment Loans
It’s easy to find installment loans in Canada. The financial market in Canada is congested with various types of loans. You can approach your bank for an auto loan, mortgage loan, and student loans.
Furthermore, there are myriads of private lenders and loan companies that are not traditional banks but offer loans to people who need it. Additionally, most of these secondary lenders also offer bad credit loans to people with bad credit. Installment loans, be it back credit installment loans or personal installment loans, are a staple product for these companies.
As mentioned above, an installment loan is acquired from a lender with an agreement to repay the amount in installments, at an agreed interest rate. This type of loan comes in handy when you need to clear short-term outstanding loans. However, it is worth noting that a credit card debt is not regarded as an installment loan, even though they require monthly payments.
Installment Loans Canada: How to Qualify
For a lender to determine if you qualify for an installment loan, they would have to evaluate your credit score, your debt to income ratio and as well as your annual income. Every lender would want to look at the debt to income ratio to access your ability to repay the loan. As such, you need to be adequately prepared and know everything there is to know about your financial position so that you can adequately answer the evaluation questions.
Because of the many lenders out there with different lending criteria, finding the right loan and lender can sometimes be confusing. To get it right, you may need to ask yourself and answer the following questions:
- How much money do I need?
- What is my credit score like?
- What do I need the money for?
- When do I need the money?
- What duration do I need to repay the loan?
- How much collateral will I need put up for the loan?
These questions should act as a guide to determining if you should go for an installment loan from a conventional bank or from an alternative lender.
Why Some Lenders Charge High Interest Rate for Their Installment Loans
As mentioned earlier, it should be easier to get a loan in Canada, even if at a higher interest rate than you will get from the banks. There are unsecured loans and bad credit loans and many types of the other loans mentioned earlier available. Lenders are at a risk of making a loss if the loan applicant fails to repay. To counter this risk, secondary lenders charge a high-interest rate on loan applicants with bad credit.
Finding Installment Loan Lender to Fit Your Circumstances
There are many lenders offering installment loans in Canada for personal borrowing and business borrowing. Some of these lenders include:
- Peer-to-peer loans: loans by individuals on online platforms where lenders loan money to borrowers.
- Crowdfunding: where many people pool funds together and loan out.
- Equipment loan: where you buy equipment with the loan advanced to you.
- Merchant cash advance: where a loan is advanced and deductions made on your credit card sales.
- SBA Express working capital loan for business startups.
- Alternative lenders
For personal borrowing, the main options are the banks and the alternative lenders. However, if you have a bad credit history, your only option is to go to an alternative lender.
Check Your Cash Flow Projections
Whether you are borrowing as an individual or as a business, you have to make sure you have a regular income to pay the loan installments. If you own a company and you want to invest the loan in the company, assess your cash flow projections for the project you want to invest in to ensure that you are capable of repaying the full amount of the loan.
Always remember that failing to service the loan on time will damage your credit score, making it hard to get future loans.If you already have a bad credit, failing to make regular payments on your loan and on time can further damage your credit.
If you already have a bad credit, failing to make regular payments on your loan and on time can further damage your credit. On the other hand, making regular payments can enhance your credit score and can help you to repair your credit.
There are also many lenders that offer bad credit installment loans with guaranteed approval schemes in Canada. This is great, but often needs intense research of the lender’s background. This is as a mere precaution to ensure you get the loan from a credible lender.
Clean Up Your Credit
Your aim is to obtain a loan under favorable terms. Having a good credit score will open the way for you to get credit from many different lenders, compared to when you have a bad credit record.To do this, you need to clean up your credit. Lowering your credit utilization ratio is one of the quickest ways to raise your credit score. Credit utilization ratio is the measure of the amount of debt you have compared to the amount of credit available to you. This ratio accounts for 35% of your credit score. Clear your debts up front to increase the credit available to you, but most importantly improve your credit score.
Having a Solid Repayment Plan for Your Installment Loans
When negotiating a favorable interest rate for your loan, you need to convince the lender that you are a good risk. To do so, you must demonstrate that you have a regular source of income. If you intend to use the money for your business, a good business plan should help you to demonstrate that you can repay the loan. The business plan should show:
- The purpose of your business
- How you intend to use the money
- A growth strategy
- Cash flow projections
- Detailed financial statements
- The purpose of the installment loan
If you require an installment loan, contact Loan Away Inc. or click the apply now button on this website and you will be on your way to getting your installment loan in no time. Even if your credit is not that good you can still get bad credit installment loans with guaranteed approval in Canada.
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We are committed to provide best customer experience possible. Currently we offer personal term loans in Ontario, Alberta and Newfoundland, but do check back with us soon, as we are working on expanding our reach to other provinces and territories.