Online personal installment loans have become the financial product of choice for many Canadians. They differ substantially from other financial products such as credit cards and payday loans and offer unique benefits.
Let’s take a look at why they are so popular and what sets them above other choices.
No Visits to an Office
As you might have guessed by the name, an online personal installment loan is handled online. What you may not know is that every aspect from application through pre-approval, loan contract, and funds release is totally office-free through a good lender.
A good lender offers a simple application form you can complete in less than 15 minutes. You should also know whether you’re approved in less than hour. You shouldn’t need to go into an office once your loan is approved either. The process should be totally automated from start to finish, including signing your loan documents.
No Proof of Income
Yes, you read that right. A good online personal installment loan provider won’t waste your time by asking for copies of your pay stubs or an income statement. You’ll just fill out the application form and their “smart” system will reach out for the necessary information.
Some online lenders require active work with the same employer for a certain length of time. They may also require a minimum monthly salary to qualify for your loan. Other than that, you shouldn’t have to bother with proving how much you make.
Less Strict than the Big Banks
If you’ve already tried to get a loan through your bank and they’ve turn you down, online personal installments loans are still an option. If you haven’t even bothered to approach them, don’t worry. You have a better chance when you apply online.
Good lenders don’t place as much emphasis on your credit file. They may turn a blind eye to a minor problem, whereas the big banks see minor issues as red flags which often lead to a loan rejection.
Some lenders have smart assessment systems that weigh many factors when applying for online personal installments loans. Even if you have less than pristine credit, they may approve your application if other information provided looks promising.
They Can Be Fast
We already mentioned that the application process is usually quick and easy. Most lenders will also let you know very quickly whether you are pre-approved, or not. Online personal installment loans through the right lender can also mean you will have the money in your bank account at record-breaking speed.
Of course, most lenders claim to offer “fast” or “quick” loans, but read the fine print. Many consider three to five days fast, while others can release funds within 24 hours. That’s a huge difference.
If you need cash quickly, because you’ve found a good deal or you don’t want to delay your plans, online personal loans are a great choice if you choose the right lender.
Online Personal Installment Loans Offer Flexibility
When you’re considering a loan, you want it to suit your needs and your lifestyle. Online personal installment loans are a great choice, because they offer incredible flexibility.
If you want to borrow for a major purchase and spread your payments over a long period, you can do that. If you want to pay higher payments for a short period to get out of debt quickly, you can do that too.
When considering a lender, check out the maximum and minimum loan terms and loan amounts. You’ll probably find some won’t consider an application unless you borrow thousands or tens of thousands. That’s great if you need that much, but what about if you just need $500 or $1,000 to tide you over? You’ll also find some that won’t lend you enough when you need a substantial sum.
Check the loan repayment terms too. Some don’t offer terms under a year or over a few years. Others will lend for 6 months or as long as 5 years.
Also check your payment options. Does the lender offer online personal installment loans with weekly, bi-weekly (every two weeks), semi-monthly (twice a month), or monthly payments? They should as more frequent payments are one of the best ways to pay off online personal installment loans quicker, which saves you interest.
Loans should suit you and your life and you shouldn’t have to settle for one that almost fulfills your criteria. Good lenders offer calculators you can use to find the best balance between payments and loan term.
Low or No Fees
Online personal installment loans should offer low or no fees. Unfortunately, that isn’t always the case.
Did you know that many lenders charge their customers an “origination fee” just to set up their account? This fee can cost the borrower between 0.5 – 8% of their total loan cost. Even worse, they usually tack this amount onto the loan amount so the customer pays interest on it over the course of the loan too.
Some loans also include a penalty if you want to pay extra payments, a lump sum, or even pay it off completely. They rely on your regular interest payments and charge you extra if you pay less. That often defeats the purpose of paying extra in the first place.
A “no fee” lender is your best choice. They make a profit from the interest they charge you, not unnecessary, costly fees.
Easy to Compare Interest Rates
Many people shop online hoping they will find a good interest rate. Unfortunately, many lenders take advantage of those looking for online personal installment loans; because they presume they don’t qualify through traditional lenders.
As a result, some lenders may charge as much as 46.93% in Canada. However, some lenders base your interest rate on the information in your application and they can be as low as 18.9%, which is lower than most credit cards.
Check the interest rate, payment amount, and end date for the loan. If you don’t like what you see, shop around.
No Need to Explain Why
Providers of online personal installment loans shouldn’t ask you why you need the money or how you’re going to use to. It isn’t their business and you shouldn’t have to tell them.
Luckily, good lenders don’t ask for this information when you apply for online personal installment loans. They ask for some basic personal information and then tell you whether you’re pre-approved, or not.
If you’re pre-approved, it’s just a matter of finalizing the loan documents. If they’re a speedy lender, money’s released into your bank account within 24 hours. Online personal installment loans can be used to consolidate debts, buy vehicles, renovate homes, or pay for a wedding or vacation. It’s your choice.
Easy Way to Rebuild Credit
If you’ve had credit problems, online personal installment loans can help you rebuild. Taking a loan and repaying it according to your repayment schedule is a great way to improve your credit score.
Paying a loan in-full can also lead to lower interest rates in the future. Once creditors see you’re reliable, they are more likely to offer more products too.
The FlexMoney Advantage
With thousands of online lenders in Canada, it is easy to become overwhelmed. However, finding the right lender for online personal installment loans is so very important. Otherwise, you will pay more than you should in interest and fees. Here’s why FlexMoney is a great choice for online personal installment loans.
Completely Online
The entire process for online personal installment loans is well, online. We will never ask you to come into an office to sign papers. Everything is done electronically and we’ll never ask you why you need to borrow.
Competitive Interest Rates
Our interest rates start at 18.99%, lower than almost all online competitors and lower than most credit cards. Online personal installment loans don’t compound interest like credit cards either. Every payment pays a portion of the principal loan amount and a portion of interest.
Our rates are based on the information you provide in your application. We review each one carefully. Chances are good you will be offered a decent rate if you provide us with accurate information and you have a solid source of income.
Fast Money
FlexMoney strives to have online personal installment loans funds in your bank account within 24 hours of approval on a weekday. If you apply on a weekend or holiday, it may take until the next banking day.
No Fees for Online Personal Installment Loans
FlexMoney does not charge additional fees. You will pay your payments and nothing more.
Minimum Three Months Employment
FlexMoney’s online personal installment loans only require active work with the same employer for at least three months.
Reasonable Salary Minimum
FlexMoney’s online personal installment loans only require a minimum income of $2,000 per month. We look at your entire financial profile, not just on what you make and what you owe.
Less Emphasis on Credit File
FlexMoney’s online personal installment loans don’t rely as heavily on your credit file. Instead, we assess your application based on many factors. We could overlook a small indiscretion that caused another lend to turn you down. Sorry, we won’t approve an application if you filed for bankruptcy within the past seven years.
Total Transparency & Great Customer Service
FlexMoney offers a 1-800 number, email, and online support if you have questions or need help. Our paperwork is straightforward and transparent too.
Find Out More
If you’re interested in exploring our online personal installment loans in Canada or you have more questions, please visit our website. We take the hassle out of borrowing so you can get on with life.