There are all sorts of ways to put installment loans in Canada to good use. Even so, some people hesitate to consider this financial alternative when they need money for any worthy cause. Part of the reason is that they may have some misconceptions about how this lending option works. Here are some basics that will help you understand installment loans and what they can do for you.
The Payments May Be More Affordable Than You Think
One of the factors that sometimes cause people to balk is thinking they will have to come up with a high installment payment every month. The fact is that many lenders are willing to work with qualified applicants who may need to keep the payments within a certain range.
It’s not unusual for a lender to offer a personal loan calculator on the website so applicants can get an idea of what sort of amount could come with a loan of a certain term. If this is one of your concerns, plugging in some basic information could indicate that the installment plan could be easier to manage than you anticipated.
Perfect Credit Is Not Always Needed
There are lenders out there who will only work with clients who have excellent credit. Fortunately, there are also lenders who are willing to work with people who may have experienced some financial difficulties in the past. If your credit score is somewhere between poor and fair, it’s the latter group of lenders that you want to approach.
While your credit score will still be considered, other factors will carry equal or even more weight. The fact that you’ve been with the same employer for a number of years indicates stability. If you’ve remained up to date on all of your current bills over the last year or so, that would also work in your favor. Lenders who offer second-chance financing understand that life doesn’t always go as planned. That’s why they look closer at where you are now rather than the events a few years back that led to your lower score.
The Process Doesn’t Have To Take Weeks
Did you know there are lenders who can review a loan application within 24 business hours or less? There are even some who can have the money in your account within one day after you accept the loan offer and return all of the essential documentation.
These types of installment loans are especially helpful when you need money now. Think of that means in terms of getting the car out of the shop, covering the cost of a plumbing repair, or taking care of any type of situation that needs immediate attention.
You Will Need To Meet The Lender’s Basic Qualifications
While there are lenders out there who are willing to work with people that have some past credit issues, there are still qualifications that successful applicants must meet. One has to do with having a verifiable source of steady income. The amount of that monthly income must meet the minimum set by the lender. A permanent residence is another possible requirement.
Many lenders provide details about what they require at the onset of the application process. That’s good since you can quickly see if you meet their basic qualifications rather than finding out that you don’t make the grade after going through all that effort.
Getting A Loan Next Time Could Be Easier
Assuming you receive the loan and pay it off according to the contract terms, you now have a positive connection with that lender. In fact, if you should need another loan in the next year or two, being approved is likely to be simpler than in the past. That’s especially true if you are still up to date on your obligations and have a source of steady income. Your positive track record indicates the lender is assuming less risk by working with you again.
Could you use a loan? Have you been hesitating because you think that no one will approve an application? Rest assured there are lenders who will seriously consider your application even if there are some past credit issues. In fact, you could have the money in hand in just a couple of days.