Crediteck

Installment Loans

Online Installment Loans Canada

There are many ways to borrow money and several ways to pay it back again. We use credit cards. We borrow money from friends and family. We set up car loans and mortgages. Rarely do we turn around and pay all of the money back in a single payment. Instead, we break it up over time to make the process easier for the borrower and provide accountability and security for the lender. 

Installment loans are one of the most popular ways to borrow because the provide a routine and structured form of repayment. Additionally, installment loans may offer benefits over credit cards or other types of loans because they tend to have more affordable interest rates and fees.

We use installment loans frequently. We buy an appliance and pay it off installments. We borrow money from our family members and pay back a bit every week or every month. The idea of paying things back in installments is simple and easy to work into our everyday financial lives.

What is an Installment Loan?

At its essence, an installment loan is simply money you borrow that you pay back over time. Installments are the routine payments you make on the loan, and when you have paid them all, you have paid off the loan and returned all the borrowed money plus the interest and fees you owed for the privilege of borrowing it in the first place. 

Installment loans come with several factors to consider:

  • The loan amount is the money that you borrowed. It might be $1,000 or $100,000 depending on your needs and your borrowing ability.
  • The term of the loan is how many payments you’re going to make to repay the loan. Terms can range from 3 months to 360 months for a traditional mortgage. Terms vary wildly by the type and amount of loan. The larger the loan, the longer the terms tend to be for repayment. 
  • The interest rate is the amount of interest the lender will charge when you borrow the money This is how you pay for the privilege of borrowing. Interest rates can vary according to the amount of the loan, the length of the terms, and your credit score or ability to repay.

What is the difference between a Payday Loan and an Installment loan?

The difference between payday loans and installment loans is in the payment terms. Both a payday loan and an installment loan let you borrow a set amount of money. A payday loan may have a lower cap on the amount of money you’re allowed to borrow than an installment loan, however.

Once you’ve borrowed the money, most payday loans will require you to repay the entire amount plus the finance charge in a single payment. That repayment might be 14 days after borrowing or it might be a bit later. But whenever it is due, you can expect to repay the entire loan in one fell swoop. The ability to repay the entire loan in a single payment is one of the reasons there is often a tight limit on how much you can borrow using a payday loan. 

Installment loans differ by design. You borrow money in essentially the same way, but instead of having a single payment to repay the loan, you get to make multiple payments over time. These smaller payments may be spread out over weeks, or more typically months. Depending on the amount you’ve borrowed, you may have the entire amount repaid after just a few payments or it may take installments over several years to repay the full amount.

Installment loans with Bad Credit

Installment loans are designed to take more time than short-term loans like a payday loan. This means the bank or lender is taking on a greater amount of risk over that time that you won’t be able to repay the entire amount or make all the payments. This is one reason why installment loans tend to have slightly tighter lending standards than payday loans.

That being said, there are still many installment loans for bad credit. The typical bad credit installment loan may have a higher interest rate than other loans for those with a higher credit score, but they are out there. In fact, some lenders for installment loans don’t check credit scores at all. They focus instead on the ability to repay the loan through paychecks or collateral instead. 

Lenders who make bad credit installment loans realize that a bad decision years ago can affect your credit score now. They are often willing to take a chance on borrowers who have a bad credit score, but they also realize there is a bit more risk in lending. Therefore, loans for those with bad credit come with a higher interest rate – to help offset the risk. Shopping around for rates among lenders can help you find the best loan for your situation.

Also check Installment Loans No Credit Check

Who is Eligible? 
canadian man
Canadian Resident
18+ Years of Age
Has a Bank Account
Proof of Income

How can I apply for an installment loan online with Crediteck?

Applying for an installment loan with Crediteck is simple. You can apply for an installment loan online in a matter of minutes. The process is designed to be simple and can be completed entirely at home. When you apply, you’ll fill out the application form using:

  • Your personal details
  • Your social security number
  • Your banking information
  • Evidence of employment
  • Your contact information
  • Once you’ve applied, it can take as little as minutes to get an answer to your application. In some cases, lenders may contact your directly via phone or email to get additional information or discuss the specifics of your application before making a decision. You do have the option to deny the loan if you are unhappy with the terms or the installment loan doesn’t feel like a good fit after evaluation. 

Once you have applied and been approved for an etransfer loan, the funds you have requested will be deposited directly into your bank account. Then you are free to use the funds as you wish. Your only obligation will be to make the installment payments on time to completely repay the loan in a timely manner.

Installment Loans in Canada

When you take out an installment loan, Canada has several areas of oversight to protect borrowers and lenders. Canada may have limits on the interest rates charged on the loan, for example. The goal of this oversight is to be sure that borrowers know their rights when it comes to lending practices and to ensure that they borrow money as safely as possible. 

It’s easy to avoid predatory or unsafe lending practices by vetting companies ahead of time and looking closely at the terms of your loan offers before committing. Be sure you understand the terms of any loan you take out and that you are comfortable with the repayment installments. Most of all, be sure you are applying for installment loans with a reputable vendor.

Bad credit installment loans in Canada

You have options when it comes to a bad credit installment loan in Canada. Many lenders are willing to look past a single metric like your credit score to consider other factors in your application. Lenders, both online and in traditional venues, may ask for additional information about your current employment, your bank accounts and to verify your recent payment history before allowing you to borrow funds.

There are faster online lenders who offer bad credit installment loans, but they may still request verification of work history in some way and your bank account information to deliver funds if you are approved for a loan.

Installment loan online rates in Canada

Installment loan rates can vary. There are several factors that go into the interest rates on any loan including:

 

  • Your ability to repay the loan as evidenced by your credit score
  • The terms of your loan.
  • Any collateral you might have for the loan.
  • The higher your credit score and the stronger your credit history, the more likely you are to have lower, more favorable terms for your installment loan. A low credit score means you’ve had trouble in the past with loans or credit cards, and lenders may charge a higher interest rate. 
  • Longer loan terms often bring higher interest rates as well because the lender is assuming a larger amount of risk over a longer amount of time. Finally, in the case of loans with collateral, like a title loan where the lender holds the title of a vehicle until the loan is paid off, interest rates are lower because the lender can recoup any potential losses with the collateral.