An Oakville installment loan can provide funds for a variety of uses. However, few lenders tell you their requirements upfront. Consequently, you usually have no idea whether you have any chance of qualifying for their Oakville installment loan.

Luckily, you can improve your chances of qualifying. The following list explains what you should look for and what to avoid so you’re more likely to get a Oakville installment loan.

Avoid a Minimum Credit Score Requirement

As mentioned, most lenders don’t tell you what they require from you. However, some lenders will mention they don’t have a minimum credit score requirement.

Why is this important? If the lender has a minimum credit score requirement, their decision rests heavily on your credit. They request a report from one or both of Canada’s credit reporting agencies to see how you rank.

The problem with this is that both credit reporting agencies have different rating scales. As an example, your credit score could be good through one agency and fair through the other. This difference could be enough to cause a lender to deny your loan application.

Additionally, many people are in a better financial position than they were in the past. Now they have the means to comfortably repay an Oakville installment loan, but their credit doesn’t reflect it. As a result, their credit score is lower than the lender’s requirement and the lender denies their application.

So how do you get around this problem? Look for a lender that does not have a minimum credit score requirement. They usually mention it on their website or blog posts, because it sets them above the competition.

Choose a Pre-Approval Process

It is normal for a lender to check your credit when you apply for an Oakville installment loan. However, the method they choose can negatively impact your credit score, whether they grant you a loan or not.

Lenders can request a hard or soft credit inquiry. Generally, mainstream lenders perform a hard credit check. This gives them all details on your credit file.

However, lenders that use the pre-approval process use a soft credit inquiry. They only want a general overview of your financial position and the process does not affect your credit score. They also consider many factors, not solely your credit. Consequently, you may have a better chance of qualifying for an Oakville installment loan.

Plus, the pre-approval process allows you to see the lender’s terms almost immediately. Since the credit inquiry does not impact your score, you are free to look elsewhere if you don’t like what you see. There’s no obligation.

Look for Digital Income Verification

No one wants to waste precious time dealing with unnecessary lender requirements. One of the most common is providing physical documents that prove how much you earn.

You may need to upload paystubs or a letter from your employer or government. If you’re self-employed, the lender may want a statement of income from an accountant, which comes at a cost. Even if you jump through these hoops, there’s no guarantee you’ll qualify for an Oakville installment loan.

Luckily, progressive lenders have embraced the digital age. They verify your income electronically through authorized bank statements. It’s secure, fast, and speeds the loan process.

Consider How You Earn Your Income

Most lenders only consider applications from those that work regular jobs. That’s bad news for many people, because that is only a small percentage of Ontarians.

Fortunately, some lenders will consider income from other sources such as pensions, self-employment, the child tax benefit, and the disability tax credit. If this is your situation, check for a lender that mentions this on their FAQ page. You won’t waste time on a lender that won’t even look at your application.

Consider Work, Bank, & Home Stability

If you’ve changed jobs, switched banks, or moved in less than a year, you need to find a lender with less stringent stability requirements. Mainstream lenders consider stability a major factor when considering your loan application.

This is regrettable, since people do these things for legitimate reasons. You might have found a better job, a better home, or a more convenient financial institution. Nonetheless, you could be turned down for a loan, if you don’t choose your lender wisely.

Luckily, some lenders place less emphasis on stability. If you can show you’ve lived, worked, and banked in the same places for at least three months, you could qualify.

Review Your Debt Load

You must have realistic expectations when you apply for an Oakville installment loan. No lender will grant you one if you carry too much debt.

The debt-to-income ratio (DTI) helps a lender determine whether your income can support another loan. Yes, you can borrow to consolidate your debts into a single manageable payment, providing your income can support it. However, you shouldn’t expect to get another loan on top of what you already owe if your DTI is too high.

Before you apply for an Oakville installment loan, calculate your DTI. Lenders usually look for a DTI of no more than .40, but less is preferrable. If it is higher, you may think that you could easily make payments on another loan, but lenders probably won’t agree. Here’s an example.

You earn $2,000 per month, but your rent, car loan, and credit card payments are $1,000. This means your debt-to-income ratio is already at .50 ($1,000/$2,000=.50). If you pay down your existing debts, the lender may consider an application.

Apply Online

It just doesn’t make sense to take time out of your day for an appointment with a brick-and-mortar lender. They aren’t safer, more dependable, or faster. They just use a different business model.

An online Oakville installment loan through a good lender offers many advantages. Firstly, the application process is usually simple and easy. Most people can complete their application form in less than 15-minutes. You can apply at any time from any device connect to the internet.

Secondly, a good online lender is legally required to safeguard your data. Consequently, they must use top-level encryption software and industry best practices. This makes them a reliable choice when it comes to your personal data.

Thirdly, you can’t beat the speed of an online loan. From initial application to funds release you could have money in less than 24 hours. Of course, this depends on many factors such as when you submit your application and sign your contract. However, an in-person lender may not even review your application during the time, never mind give you the loan funds.

Fourthly, if you choose a lender that uses the pre-approval process you never need to worry about your credit. Whether the lender approves you or turns you down, you credit isn’t impacted.

Finally, pre-approval allows you to see what the lender’s offering. You are under no obligation to accept it and can continue shopping if you wish.

Check Their Fees

Many lenders try to charge you fees and penalties that you shouldn’t pay. One is an “origination fee” just for setting up your account. This should be an administrative expense, absorbed by the lender.

Another charge you’ll want to look out for is a pre-payment penalty. This is an amount the lender charges you if you want to pay part or all of your loan off before your scheduled payment dates.

Why would a lender charge this? They want to make up for the interest lost when you pay your loan off sooner. Clearly, you shouldn’t be penalized because you want to get out of debt sooner. Always look for a lender that offers an “open” Oakville instalment loan, without these fees and penalties.

An Oakville Installment Loan Through FlexMoney

If you’re considering an Oakville installment loan, here’s what FlexMoney can offer you:

  • No minimum credit score requirement
  • Pre-approval process using soft credit inquiry that does not impact your credit score
  • Digital income verification – no proof of income
  • Three-month stability requirement
  • 100% online process – never visit an office
  • We’re Canadian! – our customer service representatives live and work here
  • Loans from $500 and $15,000
  • No origination fee or pre-payment penalties
  • Competitive interest rates
  • Fast decision & funds release
  • Outstanding customer service via our toll-free number, chat, website support, email, and FAQ page.

Our Requirements

FlexMoney isn’t like most lenders. We’re transparent and happy to provide you with our criteria for an Oakville installment loan:

  • Net monthly income of at least $2,000 from the same source for at least the last three months (we will consider income from employment, self-employment, pensions, and other steady sources, excluding Employment Insurance and COVID-19 benefits)
  • Open and active account with a Canadian financial institution with at least three months of transactions
  • Canadian citizen
  • At least 20 years of age
  • Valid email address and mobile phone number
  • Not involved in an active bankruptcy, consumer proposal, or credit counselling program.

Find Out More

If you’re interested in starting the application process for an Oakville installment loan, or if you have more questions, please visit our website. We also offer more information on our Ontario installment loans here.

FlexMoney makes it easier to qualify for an Oakville installment loan. Discover why so many people choose us for their loans.