Canadians have countless loan choices, each offering various repayment terms, interest rates, fees, and limits. Canadian installment loans are a subset of the overall personal loan market and can be used to meet a variety of financial needs.

Qualified borrowers may choose a Canadian installment loan to pay for a car repair, a home upgrade, pay off high interest credit cards, or to consolidate multiple small loans.

Unlike mortgages or most car loans, a Canadian installment loan is not backed by property either. Lenders determine eligibility through your income and many other factors. As a result, they tend to be less demanding than the big banks when they decide who qualifies for a Canadian installment loan.

After a lender approves your Canadian installment loan application, they offer a set interest rate and a set time period for repayment. If you agree, you will pay equal monthly payments with part paying off the principal and part going towards interest.

A Canadian installment loan offers simplicity. You know precisely what you pay each month and when your loan ends. This makes it easy to budget your monthly payment amount and a clear date when you know you will be debt-free.

You have flexibility with a Canadian installment loan too. Choose a shorter term if you want to pay off the debt quickly, or spread your payments over many months or years if you want more manageable payments.

Additionally, if you choose a good lender for your Canadian installment loan they will not charge you a fee for establishing an account or for repaying your loan quicker.

However, a Canadian installment loan isn’t the only loan on the market. Here are a few other financial options and why an installment loan is usually a better choice.

Payday Loan

A payday loan can also be used for any purpose. However, it is only meant for short-term borrowing. You are usually expected to repay the loan from your next pay cheque. However, in some provinces and territories you may have up to 62 days which is still not a lot of time.

Even if a loan of this nature might seem like a good solution for temporary financial woes, there are a few things you should consider.

First, payday loans have a very low limit. Typically, the maximum amount you can borrow per loan is $1,500. It is possible to take out multiple loans, but each requires a separate application.

Second, payday loans are expensive compared to other financial borrowing products. The Government of Canada states the cost to borrow per $100 is $17, which equates to between 500 and 600 percent interest.

Third, if you fail to repay your loan according to your agreement you will pay more fees and interest. This can cause your debt to grow exponentially, plus the lender may report the problem to the credit bureaus, pursue you through a collection agency, garnish your wages, or even seize your property.

Considering the high cost of borrowing and the low loan limits, a Canadian installment loan is a preferable solution.

Line of Credit

Another popular financial tool many Canadians choose is an unsecured personal line of credit. This is a revolving credit account much like a credit card, but with a more competitive interest rate. It allows you to draw as much money as you need up to your account limit.

Unlike a Canadian installment loan, you don’t need to take out a large amount at once. However, you need a solid history with a bank and decent credit to qualify in the first place. Consequently, a line of credit isn’t readily available to creditors with less than stellar credit or if they don’t have a long, well-established relationship with their financial institution.

A line of credit is not intended for a long-term debt or a high balance anyway. Carrying too much debt on a line of credit may actually negatively impact your credit score. This can happen easily due to the ease of access a line of credit offers.

However, a Canadian installment loan offers a wide range of borrowing limits and repayment terms from three months to many years. There’s no risk of debt creeping up either. You borrow what you need and know your payment amounts.

Credit Card Cash Advance

A credit card cash advance is basically a short-term cash loan. You’re using your credit card to buy cash and then repaying it through monthly payments. However, it is also a very expensive choice and it isn’t available to all cardholders.

Even if you have been granted a high limit on your credit card, pulling out cash through an ATM will cost you plenty. The interest rate you are charged for cash advances is much higher than for normal transactions. For instance, you may pay 19.99 percent interest normally, but up to 24.99 percent for a cash advance. But there’s more.

Your credit card company may also charge you up to $5 fee per withdrawal for the convenience of accessing the money. If you withdraw funds while abroad or from an ATM that isn’t supported by your credit card network, it could be even more.

Plus, you do not have the luxury of the 21-day grace period provided for normal transactions. Interest starts to accrue immediately. If you think racking up your card will earn rewards, think again. Cash advances aren’t eligible.

A Canadian installment loan is a much better option. It offers competitive interest rates and regular monthly payments. This makes it much easier to manage debt, while minimizing unnecessary fees.

Overdraft Protection

If you have a good relationship with your banking institution and a good credit history, you may also have overdraft protection. While this provides peace of mind if something occasionally goes wrong, it isn’t meant as a borrowing tool.

Should you decide to use it excessively you could lose the privilege and pay steep overdraft charges. For instance, your bank may charge $5 per incident for the overdraft and another $25 per overdrawn item. Plus, you will probably be charged interest on the overdrawn amount and it could definitely impact your credit.

Juggling your overdraft to manage other debts can quickly become a very expensive decision. A Canadian installment loan through a good lender is a much better solution. You’ll avoid unnecessary fees and you will strengthen, not jeopardize your credit if you fulfill the repayment terms.

The Ideal Solution – A Canadian Installment Loan

As you have read, borrowers do have options, but not all of them are good. If you want borrowing flexibility without paying unnecessary fees or unreasonable interest rates, a Canadian installment loan could be your ideal solution.

You will also need to find a great lender and one that provides a simple, quick process from application to receipt of funds. This certainly isn’t the case with all lenders as some demand financial statements, pristine credit, in-person appointments, and a long lead time before you receive your funds.

FlexMoney isn’t one of those lenders.

Online Process from Start to Finish

FlexMoney will not ask you to come into the office to fill out paperwork and you will not have to wait forever for an answer once you’ve applied. Everything’s handled online from start to finish and it is fast!

No Financial Statement

FlexMoney only needs to know whether you have worked at the same employer for at least three months and earn at least $2,000 per month. You also need a cellphone to verify your identity.

We do not require a minimum credit score either. Our artificial intelligence scoring system helps us make a fully-informed decision as it looks at overall risk and no single factor, other than bankruptcy, triggers an application denial. Regrettably, if you’ve had a bankruptcy within the past seven years we cannot approve your Canadian installment loan application.

Please take your time and complete your application carefully and truthfully. Incomplete or inaccurate applications can lead to unnecessary delays or a loan refusal.

Skip the Fees & Penalties

FlexMoney believes in transparency. You will never pay hidden fees or a penalty if you decide to pay a lump sum, extra payments, or your loan in full at any time.

If you agree to the Canadian installment loan terms we offer you, you will always pay the exact payment amount quoted and not a cent more.

We are happy to explain everything in our Canadian installment loan documentation and on our website. If you have questions, we are here to answer them. We want you to know that you are making the best possible borrowing choice with the best possible lender.

Compare Us to the Competition

FlexMoney wants you to get the best deal, so compare the terms we offer with those of the competition. Chances are good we will offer you a decent rate on a Canadian installment loan if you provide us with accurate information and you have a solid source of income.

If you discover something better, go for it! You are under no obligation to borrow from FlexMoney. However, you will probably find that we offer highly-competitive rates and amazingly friendly customer service. That certainly can’t be said of all lenders.

Money in Your Account Quickly

FlexMoney is committed to getting your Canadian installment loan funds into your bank account as quickly as possible. In most cases, that is within 24 hours. The only times it might take longer is if you apply on a weekend or holiday. Even then, you should receive your money by the next banking day.

Compare that to most other lenders that average between three and five days and you will soon see why FlexMoney is a better choice. We provide Canadian installment loans across all provinces and everything’s done online.

Find Out More

If you’re interested in exploring a Canadian installment loan through FlexMoney or you have more questions, please visit our website. We’re the smart choice for the best Canadian installment loan for your unique needs