iQuanti: When you need access to money quickly, an installment loan might be your ideal option.
Here is what you need to know about installment loans in Canada, as well as their benefits.
What are installment loans?
An installment loan is a closed-end loan that is paid back over a set timeframe. You receive the entire sum immediately and then pay it back in regularly scheduled payments, also known as installment payments. Every payment is for the same amount over a set amount of time, which could be weeks, months, or even years.
Once you've paid back the full amount, including any interest owed, the account is closed.
This is different from revolving credit, where the account is open-ended. This means you can borrow against it and pay it down repeatedly for as long as the account is in good standing.
Among the benefits of installment loans:
- Fast access to cash
Installment loans are great if you need fast access to a large amount of money. An installment loan can help you with sudden expenses such as a car or home repair, or it can be used to consolidate your debt, which can help you with your finances.
- Financial clarity
Because you pay the same amount each month, you'll be better able to budget for your loan payment. It won't increase over time, making it easier for you to manage your finances.
- Smaller payments
With an online installment loan, you can choose flexible repayment options. If you have more money accessible to you, you can opt for a shorter repayment term. If your finances are already stretched, you can choose a longer payment term with lower monthly payments.
- Save on interest fees
Depending on the lender, you may even be able to choose a more extended payment schedule but pay it off more quickly if you have extra money, which means you'll be paying less interest.
Some lenders charge you fees for paying your installment loan early, so ensure you're aware of any early repayment fees or charges associated with your account.
- Peace of mind
If you're struggling financially, you may not be able to pay the upfront costs for an expensive repair. But when your furnace dies or your pipes leak, it could be urgent that you get the repair done as quickly as possible. An installment loan can ensure you get the necessary repairs without draining you financially.
Rather than paying $10,000 in one go, you can pay a few hundred dollars a month.
- Access to credit
You can apply for an online installment loan in Canada provided you are 19 years or older, have a valid chequing account, and can prove you have a steady source of income. You don't necessarily need the best credit to be eligible, so even people with lower credit scores can apply.
If you have poor credit, an installment loan can help you build your credit score, so long as you make your full payments on time.
An additional benefit of online installment loans is that you can be approved quickly and easily, so you aren't left waiting or worrying. The application process is simple and usually takes a few minutes to complete. Once approved, your funds will be released to you in one to two business days.
If you need fast access to money, it's worth considering whether an installment loan is right for you.
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Original Source: 6 Benefits of an Installment Loan