Installment loans are available from countless lenders, both online and in-person. Nonetheless, the types of installment loans lenders offer and the fine print attached to them can radically differ.
No one wants to discover that they could have gotten a better deal somewhere else, after they’ve signed their loan documents. Equally, no one wants to find out that they’ve paid unnecessary fees.
Let’s take a look at what sets Flexmoney’s installment loans above the competition and why they are your best choice.
Minimums on Installment Loans
If you check out many lenders, you’ll probably discover that they don’t want to bother with small installment loans. Most want you to borrow at least $1,000 and sometimes much more. This can lead to you acquiring more debt than you intended.
FlexMoney offers installments loans of as little as $500. If you only need to borrow a small amount, you shouldn’t be forced into borrowing more.
Maximums on Installment Loans
Many lenders also offer maximum amounts of $2,500, $5,000, and sometimes $10,000. So what do you do if you want to pay off $7,500 on a credit card and another $5,000 on an existing loan? Simple – apply through FlexMoney.
Our installment loans offer a maximum of $15,000 which is a much higher limit than most other lenders.
Interest Rates Offered
This is where you’ll really start to see a difference between lenders. All offer a range of interest rates on installment loans and they’ll set the rate when you apply. However, the lowest interest rate on most installment loans usually starts around 19.99%, but can be as high as 46.93%.
FlexMoney offers highly-competitive interest rates starting at 18.9%, which is lower than most other lenders and lower the average interest rate on most credit cards.
Terms on Installment Loans
The amount of time you have to repay installment loans can also vary greatly between lenders. Some only offer short terms between three and six months, while others start at 12 months, with a maximum term of three years.
If you want to pay off your loan quickly, you shouldn’t be forced to drag out your payments for a longer period. If you want lower payments, you shouldn’t need to strain your budget just meet a lender’s terms either.
FlexMoney offers repayment terms on installment loans between six months and five years. You choose what works best for you instead of squeezing your needs into whatever the lender offers.
Fees on Installment Loans
Many lenders tack on extra fees when you apply for installment loans. For instance, some charge loan “origination” fees just for opening up an account and processing your application. These can range between 0.5% and 8% of the loan cost.
Besides this being a downright infuriating practice, it can also cost you a fair chunk of change. As an example, if you borrowed $12,000 and the lender charges a 4% origination fee that’s an extra $480.
If you want the full installment loan amount, they’ll tack the extra $480 on to what you owe and you’ll pay interest on it. The difference between $12,000 and $12,480 over five years at 18.99% is $747, or $12.45 per month. Since most lenders’ interest rates are even higher, you could pay much more.
FlexMoney does not charge origination fees on installment loans – period. Why should you pay a company for the “privilege” of borrowing money? Isn’t that what interest is all about?
Penalties on Installment Loans
Another infuriating charge that you may incur on some installment loans is a penalty if you want to pay off your loan early or make extra payments. Even though you’d think they’d be happy to take your money early, that’s not the case. They depend on your regular stream of interest and use penalties to recoup their losses.
FlexMoney does not charge prepayment penalties. Pay extra payments, lump sum payments, or your loan in full at any time without penalty.
Applying for Installment Loans
Let’s face it, who has the time to visit a lender to fill out an application form, especially when they operate during regular business hours? You’ll need to take time off work, drive to their office, fill out their forms, and answer a load of questions. Then they’ll probably ask you for a bunch of paperwork such as proof of income.
The FlexMoney application process for installment loans is done entirely online. We understand that people live busy lives and they don’t want to waste their valuable time. Just fill out the brief application form from wherever you are and on whatever device you choose. By the way, FlexMoney will not ask you for a pay stub of income statement either.
Criteria for Installment Loans
Every lender has their own criteria when they assess applications for installment loans. Most depend heavily on your credit file. This is unfortunate, because some people only have small problems on their credit file, but they’re still turned down for an installment loan. Others are trying hard to consolidate their debt, but they don’t meet the minimum credit score requirement.
FlexMoney approaches applications for installment loans differently. We require active work with the same employer for at least three months, with a minimum monthly income of $2,000. We won’t ask you for a pay stub or a financial statement, but you must be 20 years of age, or older.
You’ll also need to be a Canadian citizen with an active bank account with a Canadian financial institution showing at least three months of transactions and banking history. You will also need a cellphone and email address to verify your identity.
FlexMoney does not require a minimum credit score either. We look beyond traditional credit bureau date to get a full financial picture. Our “smart” intelligence scoring system may overlook past indiscretions if other aspects of your application and credit history show promise. However, we cannot approve your application if you’ve declared bankruptcy within the past seven years.
Our system compares what you earn to what you owe too. Generally, the system wants to see a debt-to-income ratio of 40 percent or less, but the system assesses overall risk, not just this ratio. If you have less than stellar credit or your debt-to-income ratio pushes the limit, you may still qualify.
Approvals for Installment Loans
If you still want to visit a lender in-person and you’ve decided to provide all the documentation they want, you won’t get an answer straightaway. Your application could be at the bottom of a very large pile and you won’t be able to move on with your life. Plus, there’s always the possibility that they will turn you down after all your efforts. Wouldn’t it be better to just know straightaway?
Luckily, FlexMoney provides pre-approval within minutes. You’ll never need to set foot in an office and you’ll never wait days or weeks for a decision. We review every application case-by-case and let you know right away. If you’re pre-approved we’ll lay out the terms, including your interest rate and payment amount. We do not charge additional fees.
If you’re honest, have a steady source of income, and haven’t filed a bankruptcy chances are we will offer you a very competitive interest rate.
We’ll ask you to review our offer and if you agree with the terms you can sign the pre-approval. If you don’t like the terms, that’s fine too. You’re under no obligation.
Once signed, we’ll set up your account and send you your official loan contract, which you can sign digitally.
Funds Release on Installment Loans
You’d think lenders would send you your money right away, but that isn’t always the case. Funds release on some installment loans can be painfully long. Some may take days and others weeks and that can be very frustrating, especially when you needed the money yesterday.
FlexMoney can usually have the funds for installment loans in a person’s bank account within 24 hours of approval. If you apply on a weekend or holiday, we should have the money in your account by the next business day.
Customer Service on Installment Loans
Getting questions answered is often difficult with many lenders. You might reach voicemail when you call or you might not even get an answer if you email. This can be especially bothersome, especially considering what is going on in the world at this moment.
FlexMoney offers excellent customer support. Call our toll-free telephone number and talk to a real person, reach out through email or our customer support page, or visit our comprehensive Frequently Asked Questions.
We currently lend in Ontario, British Columbia, Alberta, New Brunswick, Nova Scotia, and Newfoundland, but we’ll be adding others areas soon. Start now and you could have your installment loan in your bank account quicker than you might think.