While it’s ideal to have a safety net of cash stashed in your savings account, this is not the reality for most Canadians. Life is full of the unexpected, but some situations can leave you wondering how you’ll be able to handle everything. When it becomes a struggle to manage bills, repairs, and other expenses, payday loans are a popular option.
While these loans may seem ideal, there is an alternative: installment loans. Installment loans can be done online and give you access to cash quickly when you need a bit of financial coverage. Before getting into the advantages of installment loans, let’s dive deeper into what an installment loan is.
What are Installment Loans?
Installment loans are loans for a specific amount that is paid back to a lender with interest through consistent payments. The terms of the loan will vary depending on the individual and depend on the loan type, income of the individual, and how often paychecks are received.
Several types of loans are considered installment loans, including auto loans, so you may have an installment loan without knowing it. Home equity loans, mortgages, and student loans are also considered installment loans.
Higher Loan Amounts
Payday loans are a good way to get quick cash, but they aren’t ideal for large expenses and can leave you in need of additional financial assistance. Online installment loans in Canada are for a longer-term than, say, a payday loan. Installment loans from Friendly Lender can cover costly expenses, such as hospital bills, and can also be used to stay afloat in between paychecks.
In some cases, taking out higher loan amounts can be beneficial and eliminate the need to take out several loans from different lenders to cover expenses. By managing just one large loan, you can save money and stay on top of your expenses so that your debt is paid off in the allotted timeframe.
Applying is Simple
Getting an installment loan is much easier than procuring a traditional loan from a bank or other lenders. The process can take several weeks to be completed and it can be confusing if you’re not sure of how things work. In the event of an emergency, you may wait numerous weeks only to find out that you were denied for the loan you applied for.
Instead, installment loans make it simple to get access to the funds needed to handle any expenses you need assistance with. Online applications are short and there isn’t complicated language that needs to be deciphered before signing up. In a few minutes, you could know your approval status and be on your way to receiving an installment loan.
Flexible Credit Requirements
You don’t necessarily need to have good credit to get an installment loan. In fact, there are installment loans that individuals with bad credit can be approved for. Not every lender makes your credit score a key factor in your eligibility for a loan, so don’t be discouraged from applying if you’ve made sure the lender works with individuals within your credit range.
If you’re not sure whether you qualify for a loan or not, you can contact a representative to learn about your options. In some cases, all you need to be approved is proof of residency, age, and income, as well as an active bank account and source of income.
Convenience
In times where cash is needed quickly, you may not have time to wait for a traditional loan to be approved and distributed. When this happens, your best option could be an online installment loan from a lender you trust. Online applications are notoriously fast and easy, so you’ll know if you’ve been approved within minutes.
You might even be able to fill out applications on your cell phone or mobile device, so you can figure out a financial solution no matter where you are or what’s going on around you. Once you’re approved, your cash will be available in as little as one business day.
Now that you know more about installment loans, you can find a lender with confidence and get a loan that fits your needs and budget. Installment loans aren’t like payday loans or credit cards – you can may them off over a longer period of time, unlike payday loans, and they have a fixed interest rate, unlike credit cards. These loans are more manageable, a lot a higher amount of funds, provide coverage for large expenses and emergencies, and requirements are flexible.
If you’re considering an installment loan, be sure to understand your due dates and budget accordingly so that there is no negative effect on your credit score. Once you’ve gone over the details, you’ll be good to go.
