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GETTING INSTALLMENT LOANS
Installment loans are loans that an individual takes and pays back in periodic installments. It requires that you pay an amount on the initial money you borrowed plus the interest accrued on the same amount.
The amount paid on an installment loan is usually fixed and the borrower pays the same amount each month. The monthly amount includes both part payments of the loan and interest.
In the broad definition of installment loans, mortgage loans can also be considered installment loans. However, in most cases, installment loans refer to short-term loans without the security of a property.
A part of the monthly payment goes to the principal amount and then a part goes to the interest payable till you finish paying the loan. A borrower who is able to successfully pay off their loan will improve their credit rating which will help them get another loan in future, either from the same lender or another lender. They may even get a better interest rate than interest payable on the previous.
Installment loans are faster to get, especially from private lenders and non-mainstream financial institutions. This is important because if you do not have current cash, you can go in for installment loan and pay back the loan at a future date. The money can be used for anything you want, be it for buying a car, pay your rent or even school fees if you are a student.
Why Installment Loans?
Installment loans can be a suitable solution for those who are in need of money to cater for emergency financial needs. There’s a disheartening feeling when you do not have enough money to deal with a current financial problem. Installment loans provide the money needed and then secondly the ability to pay bit by bit what you have borrowed.
Characteristics Of Installment Loans
1. Almost all installment loans have a fixed interest rate. This means that the rate that you have to pay on the loans is fixed when you borrow the money. Because of this, the payment that you have to make monthly is the same for the period when you have to repay the loan. This allows the borrower to plan ahead in making their budgets to repay.
2. Installment loans can have collateral or no collateral. In other words, they can be secured or unsecured. For example, if you’re taking the loan to buy a house, the collateral will be the house you’re using the money to buy. That is a secured loan and there is a lower interest rate charged. However, installment loans attract a higher interest rate because they are given without collateral or are unsecured. Because of the risk that borrowers will default on the loan repayments and the lender has no way of recovering their money, interest rates charged are higher.
3. The creditworthiness of that client and their ability to pay back looking at their assets or income is also something that is considered.
Eligibility criteria for installment loans
1.A minimum of 18yrs old
3.Active bank account
4.Verifiable monthly income
5.Have a valid phone number where communication is necessary
How to apply for installment loans
-An application form can be completed online in the case where you’re dealing with an online agency.
-The lender will then review your credit rating, how much income you make annually, and how much debt you can handle compared to the income you receive. This helps them know which loan the applicant qualifies for.
-Some agencies and institutions may ask questions also relating to your current employment status. To make your credit rating desirable, you should aim to pay off any outstanding debts before applying for the loan.
-You can start your process of getting the loan with your personal bank or credit union. This is because you have already developed a relationship with them and they already have your credit history. You can get a good bargain when dealing with them. Some lenders can boast of offering you a loan in 30 minutes or less.
Types of Installment loans
The types of installment loans are determined by the purpose for which you want to borrow the money.
Firstly, there are Auto Loans. This type of loan as the name suggests is used to purchase a car. You can speak to your lender concerning the terms and conditions governing the type of car you want, how much it is going to cost and how the repayment plan is going to be. After you’re comfortable with the arrangements, the loan can be approved.
Secondly, there is also the mortgage type of installment loan. This is normally for a real estate purchase and the payment is also made in a schedule agreed upon by the lender. Usually, collateral is required. In some cases, the monthly payment that the individual makes in mortgage payments is a specific amount until the interest and the principal is paid off.
This is done so that at the end of the day the principal will be zero when the last payment is made after. Only a small number of mortgages allow an interest-only payment that does not include interests. Individuals planning to acquire their own homes should go in for the amortized mortgage. This simply means they should arrange to pay off their debts through regularly scheduled payments.
Lastly, we can also make mention of the student loans, these are loans that students can take to help pay for their higher education, tuition, books, or cater for living expenses. This type of loan differs in the sense that the interest rate is low and the schedule for repayment may be deferred whilst the borrower is still in school. Student loans are also governed by strict laws depending on the country you’re in. There are strict laws on renegotiation and bankruptcy.
Advantages of Installment loans
They are flexible – Depending on the borrower’s specific need, a loan can be tailor-made to suit you. Some of the specific needs are the terms of the loan and the length of time that the loan can be repaid.
It lets the borrower obtain financing – The money that the individual receives is at a substantially low-interest rate than what is on the market. This way the borrower has the necessary funds needed to solve his financial problem.
Possible refinancing– Although the monthly payment is fixed, sometimes in the event of an interest rate drop, some lenders will be willing to make an adjustment to the loan repayment. This is usually the case with mortgage financing.
Allows you to pay in little bits – This feature of installment loans allows the borrower to pay in little bits instead of all at once.
Increase in credit rating – Installment loans can help increase your credit score because the repayment terms are flexible and scheduled. This allows the individual enough time to pay back and this increases the credit rating of the borrower.
Disadvantages of Installment loans
Possible higher interest rate – Most installment loans are not secured. Because of this the interest payable on these loans is much higher than other loans. However, if you get your loan from a bank or a mainstream financial institution, you may pay a slightly lower interest rate than when you get your loans from a private lender or private financial institution. You may also pay a lower interest rate if your loan is a mortgage loan. However, generally speaking, interest rates on installment loans are higher.
Loan repayment – Because of the higher interest rate some borrowers find it difficult to pay the loan. This does not, however, take away the fact that many people have been helped out of their financial situations due to the availability of short-term installment loans.
Installment loans Canada
Applying for installment loans in Canada is becoming very popular as more and more people find that they cannot rely on their salaries to do everything they want to do immediately. If you are cash-strapped and need a way out, you can simply apply for installment loans. You can do this by speaking to your bankers or going online. Imagine your tuition fee payment is coming up and there are no funds for it, this is where you can contact companies like Afterpay, so long as you can prove that you can pay back the loan. There are financial arrangements and money management solutions for hard-working Canadians like you.
Since the 2000’s, it’s been tried and tested that the financial needs of individuals, groups, firms have risen to an all-time high. In Canada now, there are several cash bailout companies that are ready to meet your every need. Customer service has been beefed up and there are lending teams that are dedicated to helping you access an installment loan. The great thing is that despite your credit history or background, you can get an installment loan in Canada. Companies like AfterLoans and partners provide installment loans on flexible terms. If you need a short term installment loan, click on apply now on this website for instant online application. It takes only 10 minutes to apply and you can get your money within 24 hours.
Some uses of installment loans in Canada
Funding a vacation
You’re really stressed out and badly need a vacation, but you do not have enough money to cover vacation expenses right away, but you have money coming in shortly. The thing is that by the time the money comes in for you, your stress could have overwhelmed you. Therefore, you can apply for an installment loan and pay back the money later. That is how convenient installment loans can be.
Another scenario that may call for you to get a loan is when you get a really good deal for a vacation to your favourite location, but the offer is a limited time offer. Here again, you know you have money coming in shortly but not soon enough to use it to pay for the limited time offer vacation deal. In this situation, you can go for installment loans.
They are easy and fast to get if you can prove that you can pay back the loan. The prove may be that you have a job and you have been in that job for more than 6 months. You have a regular income for the job and there is evidence that the money is paid into your bank account regularly.
Pay off a high-interest credit card or credit card debt
Credit cards allow you to borrow money up to a predetermined limit. Because of the limit on your credit card which is not enough to pay for all the things you want to buy on credit, you may have gotten yourself many credit cards from different credit card companies. This means you will be paying bits of money to different kinds of credit card companies.
This can be overwhelming as you must remember to make regular payments each month. The annoying thing is that a small amount of monthly payment that you forgot to make can mess up your credit really badly. It will be far better if you make only one payment each month.
The way to do this is to go for a short term installment loan to pay off all the credit card debts and then make only one regular payment to the lender who gave you the installment loan. In this situation, you are using the installment loan to consolidate all your credit card debts. This may help your credit history as there is no chance of forgetting any small payment out of many that you previously made.
Invest in home improvement
Every now and then, we are all faced with the need to repair some parts of our homes. Maybe you saw a new design, you wanted to have in your home, a new ceiling style or just a needed repair and upgrade. Most people in Canada do home renovations all the time.
The proof of this is that there are thousands of home renovation companies in Canada. If you live in Canada and you need to repair your home or have a bigger renovation, you can apply for an installment loan for home renovation.
This is a very sensible thing to do rather than letting your house run down. The repairs and renovation will enhance your house and will add to the value of the house. A $5,000 dollar spent on improving your home can add as much as $50,000 to the value of your home. This will make the money borrowed and interest paid insignificant. Who will not want to invest $5,000 into their home to get $50,000?
Fund a wedding
Weddings are part of life and it comes with a lot of planning but sometimes we can become stuck in the financial commitments that we have to make with it. Thus, installment loans can be used to pay for extra things that your budget could not cover and then later pay back the loan. Some people say that your first wedding must be memorable.
In this regard, they go as far as saying that you only marry once, as if there is no divorce. If you want to make your marriage memorable, you will need to spend a good amount of money on certain niceties. If you don’t have the money immediately, installment loans can be the answer for you.
Cover moving expenses
Imagine your family must move out of the current living space to another one. If the move has been planned in advance, maybe you have the money for it. However, even planned moves may require an additional amount of money that you may not have immediately.
Perhaps all the money you have on hand may have been used to acquire the new place and fix it up. In situations like this, you can apply for installment loans. Installment loans are easy to apply from AfterLoans. Just hit the apply now button on the website and you will be on your way to getting the money you require.
Cover emergency surgery for yourself or your pet
Surgeries can be emergencies, either for yourself or your pet dog or cat or any pet or even for your wife and children. In all the provinces in Canada, there is health care that may help cover the cost of surgery. However, there are certain surgeries that may not be covered by the National Health Service. Also, unless you have pet insurance, if you don’t have the money to cover the cost of surgery for your pet, you can take an installment loan.
Needing to take your pet to the vet for a surgery is a pressing need. When you don’t have the funds to take the pet, it becomes a challenge. This is where installment loans can help you to pay for the vets’ fees.
Additional funding for a vehicle
When you have to buy a new car but do not have enough money to pay for it, installment loans can be of help. In Canada, there are several agencies that will be able to give you that extra funding you need to pay for the car. This funding that will be granted to you will have to be paid back later to the lender.
Installment loans in Canada, No credit check
Credit checks refer to the process of looking into an individuals’ financial standing before any money is released to them. Most traditional financial institutions have a policy of running credit checks on their borrowers. This is done so as to determine the level of risk an individual carries before any credit is given. To do this, they have to check your credit history, credit report, as well as your overall scores.
Several credit inquiries by a person may be an indicator to the lenders that the individual is unsuitable for a loan. It will imply that you are not efficient in managing your finances. It can also mean you’re deliberately piling up debts without any plan to deal with what you owe to the lenders. This does not paint a good picture for some clients and lenders are wary of such people.
But recently, people are able to get installment loans in Canada with no credit check being done on them. Before your loan is approved, you can either have a “no credit check” or a “soft credit check”. This does not require authorization and gives a brief overview of the applicant’s credit status.
When you’re applying for installment loans in Canada with no credit check, your credit score is normally not pulled out. What happens is that you have to prove that you have an alternative way of supporting the additional financing that you are going to receive from the lender.
Sources of no credit loans
In addition to financial institution who do not perform a credit check on a loan applicant, there are other loan sources that one can tap into without a credit check being done on them:
Friends can be a good alternative when you need funds to solve an immediate need. The reason is that they know you personally and can give you the loan at lower rates. The money can be paid back when your pay check arrives. Most friends who give you a loan will not run a credit check on you.
The family as a unit has been an ancient means of support for individuals and communities. When in need of financial assistance, they can be a source of help. This is because you’re not a stranger and they have confidence in the fact that you will repay the funds borrowed. Again, there will be no credit check for loans from family members.
Credit unions offer relatively low interest rates and their terms of payment are flexible. They, therefore, pose as another way of finding funds when there is an immediate need to attend to.
Walking into a bank or a financial institution is also one of the other ways of getting financing. This will require some formal documentation into the individual’s past credit history. This is where it sometimes proves challenging but with the current flexibility of financial institutions. Nowadays it has become very easy to get an installment loan though you may not meet all requirements.
Benefits of installment loans in Canada with no credit check
Applying Is Very Easy – You are usually just required to fill a short form online for your application and then wait for an offer to be made to you
No Checks On Traditional Credit- Neither do you appear on your credit report nor pose any harm for your credit score when soft credit checks are made on you. This is the best fit for those who have poor credit.
Classified Information – Your information is securely protected. The transaction between the lender and borrower are safe.
Fast approval – When you apply for the loan, you can have a likely approval rate in minutes. No credit check loans are based on the income you have currently. Sometimes, your past credit history is not referred to.
Easy Qualifications – The most vital information needed is your ability to repay the loan. This makes the requirements very basic.
Quick processing time – You will receive funds in your bank account on the same day or the day after.
Minimal or no paperwork – The online process is very fast and easy. Additional documents may be required from few lenders.
There may be some possible disadvantages which include defaulting. In this case, the borrower is not able to pay back. Others may find the application process unsafe. This problem has been countered by loan providers using the most sophisticated technology to ensure that customer information and identity is not compromised.
Disclaimer: All loans offered through this website are subject to credit and underwriting approval. AfterLoans.ca is a lead referral company, not a lender. AfterLoans only works with financial service providers that adhere to Canadian laws and regulations. Our lenders lend from $500-$5,000. Loans amortization is between 6-36 months. APRs range from 19.99% to 55%. The actual APR charged will depend on the lender’s assessment of your credit profile. For example, on a $1000 loan borrowed for 12 months at 29.9%, the monthly payment will be $97.24; with a total repayment, including interest, of $1166.88 There is also lender’s optional loan protection policy. In the event of a missed payment an insufficient funds fee of around 45$ may be charged (dependent on the lender). If you default on your loan payment plan the lender may terminate the plan and the remaining balance will become payable immediately. Our lenders employ fair debt collection practices, but will pursue the payment of Outstanding debts to the full extent that Canadian law allows.