Canada online installment loans can be great financial products, when you choose well. However, the market is saturated. Some are good products, while others are less desirable.
Additionally, lenders vary greatly. Choosing the wrong lender can lead to unpleasant experience and sometimes more than you bargained for. This includes paying more than you should and dealing with unsavory practices.
Luckily, you can separate good Canada online installment loans from those that are less desirable quickly and easily. Here are 10 of the best ways to be certain you get the right loan and lender.
1. Is their process completely online?
Many lenders advertise online loans, but when it comes to execution there’s an in-person component involved. This defeats the purpose of choosing a digital experience.
After all, going digital is meant to save you time and inconvenience. Some lenders ask you to fill out an application form and then visit a branch or office to finalize their Canada online installment loans. For instance, they’ll use your application to collect information, but they still want you to visit their office to sign your loan contract. That’s not an online loan.
Always choose an online lender that completely embraces the digital age. The entire process from application to funds release should be handled electronically. Otherwise, you’ll need to take time out of your busy schedule to accommodate lender requirements. Shouldn’t the lender make it easy for you to borrow if they want your business?
2. Do they tell you what you need to qualify?
Many online lenders intentionally won’t tell you their basic requirements for pre-approval. They expect you to fill out a lengthy, detailed application form, even if you couldn’t possibly qualify.
Some ask for your employment, bank, and residence information as far back as five years. They stress long-term stability, not your ability to repay at the moment.
In addition, they may want you to provide proof of income. This could be old pay stubs, a letter from your employer, or even an income statement if you’re self-employed.
FlexMoney believes this is the wrong way to handle customers. Instead, we value your time and reveal our basic requirements beforehand. Plus, we verify your income through your bank, so there’s no effort on your part. We use our own assessment process and are only concerned about the past three-months of your life.
Our company is completely transparent. This is what you need to meet our basic requirements:
- Canadian citizen
- At least 20 years old
- Steady income from the same source paid by direct deposit for at least the past 3 months
- Minimum net monthly income of $2,000 for at least the last three months
- Have an active home or cellphone number
- Valid email address
- Have an active bank account with a Canadian financial institution showing at least three months of transaction and banking history.
Regrettably, FlexMoney can’t help everyone. Sorry, we can’t consider your application if:
- You are currently enrolled in an active bankruptcy, consumer proposal, or credit counselling program.
- Your income source is Employment Insurance, the Disability Tax Credit, or government benefits related to COVID-19.
- You fail to provide your banking information or supply false information.
3. Do they reveal their fees and penalties?
This is very important, as some lenders bury the fees and penalties for Canada online installment loans in your loan contract. They may not mention them on their website either. You only discover them when you’re forced to pay.
For instance, some lenders charge you just for setting up your account with them. They’ve coined the term “origination fee” to make it sound important, but you shouldn’t pay it.
This fee can reduce your loan funds by between 0.5 – 8% of your total loan cost. For instance, if you’re borrowing $12,000 and the lender charges the lowest origination fee it would cost you $60. If they charge you the maximum amount, that’s $960. This amount comes straight off your loan funds, so you receive less than you borrowed.
Additionally, many traditional and alternative lenders penalize you if you want to pay more on your loan. It’s their way of recouping some of the interest you would pay if you continued making regular payments.
FlexMoney believes this is bad business. Accelerate your payments or make payment in-full at any time, without penalty.
4. What customer service options do they offer?
If the pandemic has shown as anything it is that no one can predict what might happen. As a result, there may come a time when you need to contact your lender. It could be to clarify a grey area, to check your loan balance, or to verify if you’re eligible to borrow again.
Whatever the reason, a good lender offers multiple contact methods. They shouldn’t rely on email alone, because this won’t help you if you need an immediate answer.
Look for a lender that offers live customer service with an agent during regular business hours. This should be via a toll-free number. They should also provide website support tickets so they can’t ignore your request.
Review their website too. Do they have an in-depth FAQ section that answers common questions, or are you forced to reach out any time you need a bit of information?
You may also want to check whether they’re a Canadian company, or based elsewhere. It makes sense that Canada online installment loans should be handled by Canadians, not cross-border companies.
5. Do they have a minimum credit score requirement?
As mentioned, many lenders don’t reveal their lending criteria. However, credit plays a crucial role for many.
As such, you may see a website advertising Canada online loans for those with bad, good, or excellent credit. However, how each lender defines these may differ greatly. For instance, a “good” credit score could be 660 with one lender and 720 with another.
Luckily, FlexMoney does not have a minimum credit score requirement. Instead, we use artificial intelligence assessment to get a well-rounded overview of your financial situation. It considers many factors, not just your credit.
6. How do they check your credit?
All lenders check your credit when you apply for Canada online installment loans. However, they can choose one of two methods when they do – a hard inquiry or a soft inquiry.
A hard inquiry gives the lender all your credit details over the past six-years. Every hard inquiry stays on your credit file for up to 36-months. Each hard inquiry also lowers your credit score slightly.
While this may not be an issue if you have a long, reasonably good credit history, it isn’t a good choice if you’re building credit or your payment history is short.
Multiple hard inquiries can also be seen as a problem. It may appear you’re having difficulty obtaining credit or you’re trying to take on more debt than you can afford.
Conversely, a soft credit inquiry gives the lender a high-level overview of your credit health. It is often used as part of the pre-approval process for Canada online installment loans. This does not lower your credit score and you have the added benefit of seeing what they have to offer, without obligation.
7. What options do their Canada online installment loans offer?
When you’re looking for a loan, you’ll need to verify the lender offers what you need. Some lenders don’t bother with small loans. Others have very low limits, unless you have pristine credit.
Additionally, some lenders offer a great range of repayment terms, while others are very limited. For instance, the shortest term on most loans through a mainstream lender is 1-year. This may be too long for someone looking for a loan until they sell their home or get an inheritance.
As our name suggests, FlexMoney is all about flexibility. We offer loans as low as $500 and as high as $15,000. You can also choose whatever payment frequency suits your life. We offer weekly, bi-weekly, bi-monthly, or monthly payment option with terms from 6-months to five years.
8. How quickly do they decide?
If you’re applying online, it’s natural to expect a speedy process. However, some lenders of Canada online installment loans will leave you dangling after you complete your application. They don’t make the most of technology and manually review each file.
Of course, this is frustrating, especially if you’re in a hurry. Besides that, it is also totally unnecessary.
Lenders with a fully-automated and tested system should give you a decision in minutes. It doesn’t make sense to wait on a slow lender, especially since they could still turn you down after waiting patiently for hours or days.
9. How quickly do they release funds?
It’s understandable that you would expect to get funds from Canada online installment loans quickly, once you’re approved. After all, everything’s been reviewed and signed. It’s just a matter of transferring funds. Unfortunately, that’s not always the case.
Some lenders take days to actually send you the money. Luckily, Canada online installment loans through FlexMoney offer money in bank account within 24 hours.
10. Do they have a good reputation?
In our digital age, it’s almost a given that you would check out a company online. However, not all online reviews are from people that actually used the company. For instance, anyone can post a Google review and often times they’re from people that were refused or didn’t like what the company offered.
Read customer reviews and testimonials from independent, external sources. For instance, TrustPilot and the Better Business Bureau offer customers an opportunity to relate their actual experiences.
FlexMoney Canada online installment loans
Here’s a quick summary of what FlexMoney offers. Our Canada online installment loans are a great way to borrow quickly, without the hassle:
- Licensed lender, bound by provincial and federal lending laws
- We’ve issued loans in Canada since 2012
- 100% online – sign your loan contract digitally
- No minimum credit score and no proof of income
- Soft credit inquiry
- Pre-approval process – see what we’re offering, then decide
- No hidden fees
- Competitive interest rates
- Quick decision and funds release
- Excellent customer service options