Whether you have an outstanding bill to pay, you want to renovate your home or you require quick money for any other reason, getting a loan is an ideal choice.
Right from banks to private lenders and financial institutes, there are numerous options at one’s disposal if they are planning to apply for an installment. Here, you will find all the information related to this type of loans, why you should apply for them, and what are the choices for people who have a bad credits score.
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What are Installment Loans?
An installment loan, as the name suggests, is a type of loan, in which the lender gives the amount of the loan in a lump sum to the borrower, which is then repaid by them in form of fixed payments. Along the with the amount and duration of the contract, the rate of interest is also fixed.
Apart from meeting certain expenses, this type of loan can also be acquired if you want to build your credit. Making the payments on time can help to improve your credit score, which can prove to be quite advantageous in the long run.
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Requirements to Get an Installment Loan
The major requirements that one has to fulfill in order to get their application accepted include:
- Having a proof of their Canadian citizenship
- Having an active bank account
- Providing lender their proof of income
- Having a government-issued ID for the purpose of verification of certain details
Benefits of Applying
Installment loans are considered to be suitable because of the numerous benefits they offer. Have a look at some of them:
- It is asy to apply
- Available across Canada
- Fixed payment schedule
- Fixed rate of interest
Are People with Bad Credit Able to Apply?
Many people in Canada believe that it is difficult for them to get their loan application accepted if they have a bad credit score. While banks and some financial institutes may not accept such a loan application but the good news here is that there are some private lenders who are willing to approve people even if their credit score falls in ‘bad’ category.
Not only the process has become easy for them, but they can also now get it on favorable terms with a relatively lower rate of interest. This way, they can meet their certain expenses or pay outstanding bills without facing any major difficulties.
Application Process
The process to apply for an installment loan in Canada with guaranteed approval for people with bad credit is an easier one. All you have to do is to follow the given steps:
1. Find a credible lender. They will have to do a little research here in order to select the one that offers loans on easy terms.
2. The next step is to fulfill all the necessary requirements. This includes having the required documents and making arrangements of other proofs.
3. Now, apply for the loan. For this purpose, contact the bank and submit your application. The lender, at this stage, will verify your application.
4. Set a schedule. It is important to know that the schedule you have set will affect the rate of interest. Hence, you need to set it tactfully.
5. The last step is to complete the paperwork and sign the contract.
There you have it! By following this simple process, you can now get a guaranteed approval.
