Online personal installment loans offer Canadians a convenient, flexible financial solution. However, the best loans have changed in recent years to meet the needs of the consumer.
Here’s what to look for if you want to enjoy the best and latest in online personal loans.
1. Simpler to Apply
Online personal installment loans were always a better choice of in-person ones for several reasons. First, a good lender eliminates the need to visit an office, which saves you time and money. Second, the application form is usually less complicated than those of a traditional lender. Finally, online lenders simplify the lending process through the use of leading-edge technology.
All this remains true today. However, technological changes, advancements in data encryption, and greater efficiencies have made it much simpler and safer to apply than in the past.
Basic Application Form
As an example, applicants today usually spend less than 15 minutes to complete their streamlined application form. They don’t have to provide proof of income, as modern lenders confirm regular income deposits through the bank.
Leading-Edge Encryption
Additionally, data is heavily encrypted with protections far outweighing a brick-and-mortar lender. There’s no sensitive paperwork sitting in someone’s in-box that can easily go amiss.
Completely Digitized
All aspects of the application are automated and digital, including accepting loan terms and signing loan documents. Documents are digitized, encrypted, and secure.
2. Better Lender Choices
Many lenders offer online personal installment loans. However, just because these loans are readily available, it doesn’t mean you should choose the first lender than approves you.
Multiple Customer Service Options
You’ll want to choose a reputable, accountable, and transparent lender. They should conduct themselves professionally and offer many ways for you to interact with their company. For instance, they should provide a toll-free number as well as email and website support.
Customized Credit Scorecard
If your credit is less than perfect, you’ll also want to find a lender that uses their own scorecard. This means they consider many factors, not just your credit file. Plus, a good lender will use a “soft” credit inquiry if they do check your file. This does not lower your credit score or leave a bad impression if you decide not to borrow.
Regrettably, many online lenders use a “hard” credit inquiry. This lowers your credit score by about 5 points. While this may seem a small amount, it isn’t if you’re building your credit. Hard inquiries also remain on your credit file, whether you borrow or not.
Easier to Compare Rates
Besides these credit file implications, your lender choice will definitely impact your interest rate. Some lenders are happy to cater to those who can’t get loans through traditional lenders, but at a very steep cost. It is not uncommon to see interest rates as high as 46.93% through these lenders.
Fortunately, you can find much lower interest rates if you shop around. It’s never been easier and faster to do so.
3. Greater Oversight
Once, if an individual was turned down by their bank when they applied for a loan, they had few choices. They had to accept whatever terms a lender might offer them who was willing to grant them credit. That certainly isn’t the case now.
Easier to Check Reviews
Consumers can shop around for the best possible online personal installment loans and the best lender. They can find a lender that is a leader in the business community. They can also check reviews to see who offers professional, ethical services and a solid product.
Licensed Lenders Are Accountable
Lenders don’t have to become licensed and many don’t. However, those that do demonstrate a commitment to professionalism. They are willing to come under scrutiny if a consumer has an issue.
Licensed lenders must also follow very strict lending guidelines set by each province. These laws limit how much interest they can charge and what form fees and penalties may take.
No Need to Pay Fees
Licensed lenders can’t charge an origination fee just for setting up your account. They can’t penalize you if you want to make extra payments or you would like to pay your loan off early.
Unlicensed lenders aren’t governed by these laws. As a result, you have little recourse if they handle your loan improperly. They can also charge you outrageous, open-ended fees. For instance, origination fees can cost you between 0.05% and 8.0% of you loan amount. Fees for late payments can continually accrue interest, without a cap.
Consumer agencies may act on your behalf, but without laws to back them it could be difficult to find a resolution. It is much simpler and wiser to look for a licensed lender in your region.
More Transparency
Licensed lenders are legally obligated to reveal all costs upfront. You will also have sufficient time to review paperwork and ask questions. Until you decide to sign, you’re under no obligation. Plus, the lender must adhere to regulations such as a cooling off period if they apply to your area.
As mentioned, unlicensed lenders aren’t obligated to offer this level of transparency. In fact, they may actually try to hide their steep fees, hoping you won’t notice.
4. More Options
Online personal installment loans have never been more flexible than they are today. Whether you are looking for a small loan of $500 or one for much more, there’s a lender that can accommodate you.
Repayment Choices
The greatest changes in recent years are within your repayment options. For instance, if you want to make a major purchase, but repay over five years, you can. Alternatively, you may want to borrow a small amount and repay it within six months. You can now do that too.
Payment Alternatives
Today’s online personal installment loans also offer a wide array of payment alternatives. You’re no longer forced to make monthly payments, unless that suits you.
A good lender offers weekly, bi-weekly (every two weeks), semi-monthly (twice a month), or monthly payments. That way, you can choose whatever method best aligns with your life and your finances.
Of course, modern online lenders also encourage automatic payments. Just set it and forget it. You’ll meet your loan obligations and build your credit.
5. Faster Than Ever
One of the greatest assets of online personal installment loans has always been speed. Even if you thought the process couldn’t get any faster, it has.
Good lenders use artificial intelligence to instantly review your application. They notify you within minutes whether you’re pre-approved. Pre-approval includes the terms the lender is offering you including the interest rate.
If you like what you see, it is just a matter of accepting the terms. The lender prepares your loan documents and sends them to you for signature. This is done digitally.
Once you sign the documents, you could have the funds in your bank account within 24 hours, if you choose a good lender.
Online Personal Installment Loans Through FlexMoney
FlexMoney is a professional, licensed lender that offers the best possible loan experience in Canada. We’re a Canadian company and we’ve served borrowers just like you since 2012.
If you’re searching for a lender that keeps pace with the latest trends so you get the best possible product and service, we can help. Here’s what we have to offer:
- Simplified application process
- Leading-edge data encryption
- Digitized experience and 100% online
- Outstanding customer service via our toll-free number, website, or email
- Custom credit scorecard
- Soft credit inquiry
- Interest rates starting at 18.99%
- Licensed in Ontario, British Columbia, Alberta, New Brunswick, Nova Scotia, and Newfoundland
- No origination or prepayment fees
- Repay between 6 months and 5 years
- Loans from $500 and $15,000
- Fast decision & funds release
Our Qualifications
If you’re wondering what are qualifications are for our online personal installment loans, they are listed below:
- Earned a minimum net income of $2,000 per month, for at least the last three months. We will consider income from self-employment and pensions.
- Open and active Canadian bank account, 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.
- Income is not derived from Employment Insurance, the Disability Tax Credit, and COVID-19 benefits.
If you’re interested in exploring our online personal installment loans or would like to start the application process, please visit our website. We offer cutting edge online personal installment loans for busy Canadians.