A bad credit score can leave out people in a challenging situation, making it difficult to access cash when the need arises. It’s worse if you don’t have a credit card or the credit limit is not adequate because you can’t turn to a credit card cash advance. Often, most people in such situations go for online installment loans Canada to help them go through the financial hardships.
But, some types of personal loans can make a huge difference in your life while others should be avoided at all costs. The way you use the loan is very important. Fortunately, you can find several online lenders available for you. Here is what you need to know about installment loans in Canada.
Payday lenders
Recently, the economic situation has been rough for many people. Globalization has created a competitive environment for companies, leading to an impact on their bottom lines. As a result, wages have been pushed lower affecting most workers. In response to such an economic climate, various payday lenders have mushroomed. These lenders offer people great deals that are just too good to be ignored.
Many of the lenders can provide you cash for a contract or post-dated check to pay when you receive your monthly pay. The best news is they usually offer quick and easy transactions with little or without credit checks. All you have to do is to fill in a few pages of paperwork and you will instantly have money in your pocket to pay for utility bills, buy groceries, or pretty much pay for almost anything. Here is the deal, whenever you pay back the initial short-term loan, you’re free to get another loan if you cannot make ends meet again.
Installment loans
If you don’t have an emergency fund that requires to be taken care of, there is a way out for you. The best option is to take a small installment loan to pay off such expenses. It’s easy to get money to pay for your expenses. As the name suggests, installment loans give you a chance to pay the lender in installments or make monthly payments. This means you are obligated to make such payments until you pay off the loan.
Best of all, these installment loans usually have lower interest loans than most of the other types of loans. By paying off the loan, you can build a good credit history with the lenders. You can opt for either an unsecured or secured loan, though your best bet might be an unsecured loan if your credit history is poor.
Most lenders request collateral, such as personal property for a secured loan. This acts as an assurance that you’ll pay off the loan as agreed. You can choose to use your vehicle or home as collateral. The lenders are encouraged to give you a lower interest rate on the loan because it has a lower risk.
But, if something goes wrong and you fail to pay off the loan as agreed, the lender is free to seek legal action to secure the property you placed as collateral. The good news is that many people who take secured loans usually pay them off on time and the lenders don’t need to take legal action to take possession of your collateral.
How to access installment loans
You might be wondering how you can get these loans. Well, the best way is to choose a reputable lender who can help you get on the right path of not relying on payday cash for your expenses. You can build a good credit history with a responsible lender.
In this way, they can help you in the future to secure a vehicle, a home, or any valuable asset. Even better, such a lender can offer you lower interest rates with a good credit history. Mind you, you will be in safe hands with installment loans because they give you peace of mind. Below are more benefits of getting installment loans with online lenders:
- Fast approval. Online payday lenders may inform you almost instantly on whether your loan application has been approved or not, the amount of money you can borrow, and your payment options. Unlike traditional banks, you can do everything online without encountering any unnecessary delays.
- Better interest rates. Most often, online-only lenders offer lower interest rates and service fees than other financial institutions. This is because they have fewer overheads than banks and other lenders with physical branches. This tends to decrease their operational costs, meaning you pay less for their services.
- East approval process. If you are experiencing financial problems and your credit score is bad, traditional banks might not give you a loan. However, online lenders don’t have problems offering you a loan regardless of your credit history. What they do is to check your other creditworthiness like utility payments.
- Access to unsecured loans. Most online lenders offer unsecured loans. Hence, you don’t have to provide a collateral for it to be approved. If you default on the payments, your credit score will be the only one that gets affected rather than losing your property.
The loan application form
The loan process used by many lenders is the same as those utilized anywhere else, though it’s easier. Depending on the online lender, most of them look for your personal information and financial information, such as your income, job details, and your expenses. You don’t have to worry about the safety of these data because the high industry standards make sure it’s secure. Therefore, the only person who can see this data is the one who is authorized to do that.
Once you fill in the form, the approval process might take just a few minutes. You can use any device to fill in this form. But make sure that you give correct information to avoid any delays. Ultimately, you may not get the results as quickly as you had expected if you provide incorrect information. If you want an emergency loan to pay for your expenses until payday, installment loans are the right way to go.
