It’s no secret that the past year has been difficult for many across the country.
More Canadian citizens are living paycheck to paycheck and struggling to make ends meet. You can’t be blamed for having less than you need during this trying time.
Are you considering getting an installment loan to help combat this issue?
While getting a loan may seem like a simple matter, it’s important to know that you’re going about it the right way – with terms you can handle.
Learn what you need to do to apply for an installment loan and choose the right lender with this simple guide. Read on and we’ll walk you through what you need to know.
What Are Installment Loans?
An installment loan is a particular type of loan that a borrower can receive from a bank or money lender. The key trait of an installment loan is that it requires the borrower to pay back a fixed amount of money on a regular schedule of payments.
Each of these payments includes a portion of the borrowed amount and typically also includes some percentage of interest on the debt.
While interest rates are currently higher than average, it should still be possible to find an arrangement that feels manageable for your situation.
How much might a person who takes out an installment loan expect to pay each time? That will depend on a number of factors. The amount of the loan, the interest rate on the loan, and the term length of the loan will all end up determining how much money will be required at the end of the day.
There also might be application processing fees and potentially other charges that can push up the price. If a borrower is late with their payments, late fees might also be incurred.
Generally speaking, installment loans are paid back on a monthly schedule, but any type of schedule might be used depending on what is agreed on between the borrower and lender.
The main advantage of an installment loan? A schedule of fixed payments means no surprises for the borrower. It’s easier to budget when you know exactly how much you’ll owe each month.
This lack of surprises makes the installment loan the preferred choice of loan for many Canadian citizens. Paying back an installment loan on time can also be a great way to build up your credit score.
Installment Loan Eligibility
Interested in getting an installment loan but not sure if you’re eligible? It shouldn’t be too hard to determine if you’ll be able to get a loan. Most quality lenders make their requirements clear and easy to understand.
Most commonly, you’ll need to be able to prove that you’re a legal adult, a Canadian citizen and that you have some form of reliable income or employment.
This last requirement is the most important and sometimes the most difficult for borrowers. If you don’t currently have a source of income coming in, it might be difficult to secure an installment loan as it would mean you could be a potential risk to the lender.
If you are employed, you can provide proof of this employment via recent paystubs or bank deposits, most commonly. Disability and social assistance payments are generally not considered income.
You’ll also need to confirm to the lender in question that you are not currently facing bankruptcy or a similar consumer proposal. If you are, this could make you intelligible to receive an installment loan.
Granted that you meet these requirements, confirming your eligibility for an installment loan is as simple as filling out a brief application.
Apply For an Installment Loan
Another big benefit of an installment loan is how quick the application process can be. If you’re in need of a cash influx fast, most lenders can turn around an application and get money into your account within a day or two.
Some lenders can even get cash in your account within hours of submitting your application.
Lenders may require a credit check alongside your application, but there are many strong lenders who won’t require this. These lenders are more interested in your financial future than your credit past – and they will work with you to create terms that match your current financial standing.
Typically, within an installment loan application, you’ll be asked to detail how much you are interested in borrowing and what you plan to use the loan for. Within the application, a lender will also often break down their expectations as far as payment schedules and interest goes.
You should make sure that you are able to handle these terms before moving forward with your application.
You’ll also need to provide a good amount of personal information, including your address, contact information, social insurance number, and so forth. You’ll also need to provide information about your bank account so that the loan amount can be successfully deposited.
All in all, the application process should be quick, easy, and clear. After all, the point of this process is to get you the money you need as efficiently as possible – the application should support this goal.
Securing an Installment Loan
Your financial stability is important. Securing an installment loan might be a necessary step in finding balance in your financial life. If you’re thinking of seeking out this kind of loan, you’ll want to get familiar with what the application process looks like.
The above information covers all the basics you’ll need to understand about installation loans. With this information in hand, you should be able to quickly move forward and secure the funds you need.
Ready to apply for a loan right now? Take a look at our brief, no-credit-check application and get started.