A Canadian installment loan is a financial product that offers many benefits. For instance, you can choose how long you want to take to repay your loan.
You also pay a fixed amount each time you make a payment. Every payment reduces your outstanding balance and a portion goes towards interest too. Fortunately, your payments won’t go up if interest rates rise, since your rate is locked in throughout your loan.
Installment loans also offer the benefit of simple, not compound interest. An example of compound interest is when you don’t pay off your entire credit card balance. The credit card company charges you interest again on whatever you owe, plus the interest they initially charged on the full amount. In other words, you pay interest on interest.
As well, a Canadian installment loan through a good lender doesn’t require you to back it with collateral such as a car or a home. Consequently, your assets are never at risk when you choose a good Canadian installment loan.
Finally, a Canadian installment loan can be used for almost any purpose. However, most people tend to use them for the following reasons.
In today’s credit-driven world, you might have multiple credit cards and more debt than you intended. If your credit cards have very high interest rates, you can struggle to make multiple payments. Plus, you could pay much more interest than you should.
If the lender offers you a decent interest rate, you can definitely get out of debt quicker than you ever could paying down your credit cards. You also have a definitive loan end date making it easier to plan your finances.
Besides the financial aspect, consolidating your debts will alleviate stress and inconvenience. The right Canadian installment loan simplifies your finances. You clear the slate with the credit card companies and make a single, affordable payment instead.
Plus, if this is your first Canadian installment loan, you could potentially improve your credit score. An installment loan would increase your credit mix, which accounts for 15% of your overall score. If you make your payments on time throughout your loan, you are also strengthening your credit history which accounts for 35% of your credit score.
Finally, since a Canadian installment loan offers flexibility, you can also choose whether you want to spread payments out or pay off your debt quickly. This gives you more control of your cash flow.
Small Home Renovations
Improving your home can add value. However, most home improvement loans rest on the equity you’ve built up in your property. This ensures the lender gets their money back, since they place a lien on your property title.
Additionally, mainstream lenders will make you work very hard to attain approval. They will require a property assessment to ascertain the value of your home. They may also want you to obtain quotes from contractors to justify your requested loan amount. You may also pay other fees just to get your application into their system for consideration.
While all this might be understandable if you want to borrow hundreds of thousands of dollars, it doesn’t make sense if you are doing a small home renovation. Perhaps you want to add stone countertops to your kitchen. Maybe you want to switch out the fixtures in your bathroom so you flip a house for top dollar. Whatever the case, if you want to borrow less than $15,000, no lender should be able to hold your property hostage. It is a relatively small amount compared to the value of your home.
Many Lenders Don’t Offer Small Loans
Surprisingly, even if you do decide you want to go through a traditional bank, you could discover they don’t issue small home renovation loans anyway. It’s not worth their effort.
Luckily, a Canadian installment loan can be a great alternative. There’s no need to provide a good lender with your plans or how you ultimately spend the money. The loan is based on your ability to repay the loan, not the property value. The process is simple, straightforward, and quick.
Buy a Major Item
Charging a large amount on your credit card means you’ll pay compound interest, unless you pay off the balance before your next statement. Of course, most people charge large items, because they don’t want to pay the full amount at once. Nonetheless, even if you make the minimum payment on a credit card, your balance won’t come down much, if at all.
Fortunately, a Canadian installment loan offers simple interest and fixed payments. You can break up large amounts into small, manageable payments. In fact, that is one of their greatest benefits. Your balance does go down every payment and you do make a dent in what you owe.
Another benefit is you can use one to buy a car, boat, RV, or ATV vehicle, without saving up for a down payment. You won’t have a lien against the vehicle title, so you can sell the vehicle whenever you want. If you have decent credit, you can often get a better interest rate than through a dealership or independent auto loan too.
Fund Your Small Business
If you’ve always wanted to run your own small business, don’t let mainstream lenders dash your dreams. They normally won’t look at your application unless you’ve been in business for at least six months, can show you’re turning a profit, and you have a strong business credit history. Of course, you probably wouldn’t need a loan if that was the case.
Luckily, a Canadian installment loan could offer you the initial funds you need to get your business off the ground. There’s no need for collateral, financial statements, or a long business credit history. If you can demonstrate you have the means to repay a loan, you could qualify.
Fund Your Wedding
Weddings are very expensive affairs, even if you decide to keep it simple. All too often, couples slap costs on their credit cards as they book what they need. This can make it almost impossible to stick to a budget, never mind protect your financial future.
The venue, caterer, photos and video, clothing, flowers, rings, and your honeymoon can cost you a lot. How much? Recent figures suggest the average cost of a wedding in Canada is $28,000, excluding the honeymoon! That’s a huge amount of money to put on credit cards.
Fortunately, a Canadian installment loan can help you set a budget, pay equal payments, and start your new life off on the right foot.
Handle a Funeral
No one likes to dwell on death, but it can happen to anyone at anytime. If it happens to one of your loved ones, you could suddenly find yourself handling their final arrangements.
Sometimes people don’t have life insurance or a healthy bank account, and you might need to pay. Even a simple cremation costs at least a few thousand dollars and a funeral can cost tens of thousands.
Luckily, a Canadian installment loan can help you if you’re not in a position to pay these expenses outright. Instead of stressing out over yet another issue, you can deal with the situation quickly.
Pay Moving Expenses
Moving isn’t always something we can anticipate. Your employer may have felt the economic crunch and suddenly you need a new job. Perhaps you’ve had an epiphany and want to start a new career. However, you must move to a new city to do so.
Maybe the hot real estate market prompted you to list your home, only to have it sell in days. Now you’re scrambling to find a new place and must stay in rental accommodation.
Whatever the reason, moving disrupts your life and your finances. Hiring a mover, paying deposits and hookup fees, or waiting for a real estate deal to finalize can strain your pocketbook. Fortunately, a Canadian installment loan can provide that extra capital you need until you’re settled into your new home.
Book a Well-Deserved Vacation
It’s not surprising that many of us are more than ready to take a long vacation. However, travel is more expensive than ever and you probably don’t want to wait another couple of years to get away.
Whether you want to lounge beside the Caribbean, trek through the mountains, or visit every museum in Italy, a Canadian installment loan can fund your adventure. Enjoy your holiday and pay off your loan through affordable payments when you return.
A Canadian Installment Loan Through FlexMoney
Now that you understand the benefits of a Canadian installment loan, we want to let you know why FlexMoney is your best lender choice. Here’s a summary of what we offer:
- We’re Canadian owned and operated
- FlexMoney offers a 100% online process
- Simplified application form – apply at any time from any device – most people complete our application form in less than 15-minutes
- Artificial intelligence assessment – we consider many factors, not just your credit
- No minimum credit score requirement
- Electronic income verification – no uploading pay stubs or income statements
- No origination fee for setting up your account
- No prepayment penalties – we welcome extra payments at any time
- Quick decision – you’ll know whether you’re pre-approved within minutes
- Digital contract signing – no need to visit an office
- Fast funds release – sign your contract within business hours and you could have money in your account within 24 hours
Find Out More
Let FlexMoney take the hassle out of borrowing. Our online Canadian installment loans are fast and easy. We make it simple to get cash now.