Installment Loans for July 2024

Installment Loans
Get an installment loan at one of the lenders verified by our specialists. On 24.07.2024 there are 23 options available to you. Increase your chances of getting a loan — fill out an application with a free credit rating check.
Offers: 23
Updated
25.06.2024
11:15
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Mr. Payday
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Rating by Finanso®
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The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
up to $10.000
Mogo
Installment loan
Rating by Finanso®
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The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
5,000$ - 35,000$
Rate
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Effective interest rate on the product

up to 29.99%
Term
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Loan term for the financial product

up to 60 months
Coast Capital Savings
Personal Loan
Rating by Finanso®
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The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$500-$50,000
Rate
i

Effective interest rate on the product

7.5%
Term
i

Loan term for the financial product

60 months
Mogo
Personal Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$500-$15,000
Rate
i

Effective interest rate on the product

up to 46.96%
Term
i

Loan term for the financial product

up to 60 months
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
1000.00 – 7500.00 C$
Rate
i

Effective interest rate on the product

12.99 – 29.99 %
Term
i

Loan term for the financial product

2 years – 5 years
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$1,000 - $25,000
Rate
i

Effective interest rate on the product

up to 33.92%
Term
i

Loan term for the financial product

up to 60 months
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
1000.00 – 15000.00 C$
Term
i

Loan term for the financial product

6 months – 60 months
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
to 7000.00 C$
Rate
i

Effective interest rate on the product

to 48.99 %
Term
i

Loan term for the financial product

to 60 months
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
500.00 – 35000.00 C$
Rate
i

Effective interest rate on the product

9.99 – 46.99 %
Term
i

Loan term for the financial product

6 months – 60 months
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
300.00 – 1500.00 C$
Rate
i

Effective interest rate on the product

120.00 – 275.00 %
Term
i

Loan term for the financial product

3 months – 7 months
Installment Loans for July 2024

An installment loan is a type of personal loan that provides borrowers with a fixed amount of money, which is repaid over a set period through regular payments, or installments. These loans can be used for various purposes, such as covering unexpected expenses, debt consolidation, or making a major purchase. Unlike payday loans that typically require full repayment on the borrower's next payday, installment loans offer more flexibility with longer repayment terms. Borrowers can make monthly payments, and the loan terms often include affordable fixed payments. Additionally, installment loans in Canada may involve a credit check as part of the application process, allowing lenders to assess the borrower's creditworthiness.

Features

  1. Flexible Repayment Terms. Installment loans in Canada offer borrowers flexibility in repaying the borrowed amount. Instead of requiring a lump-sum repayment, borrowers can make monthly payments over a predetermined period, making it easier to manage their finances.

  2. Credit Check. Many installment loans in Canada involve a credit check during the application process. This allows lenders to assess the borrower's creditworthiness and determine the terms of the loan, including interest rates.

  3. Affordable Fixed Payments. Borrowers benefit from knowing the exact amount they need to repay each month. Installment loans often come with affordable fixed payments, providing predictability and helping individuals budget effectively.

  4. Online Application. The convenience of online applications has become a prominent feature of installment loans in Canada. Borrowers can apply for a personal installment loan from the comfort of their homes, streamlining the application process.

  5. Reasonable Interest Rates. While interest rates can vary, installment loans in Canada typically offer reasonable rates. Borrowers should carefully review the loan terms to understand the interest rates and any additional fees associated with the loan.

  6. Debt Consolidation. Installment loans can be used for debt consolidation, allowing borrowers to combine multiple debts into a single loan with a structured repayment plan. This can simplify financial management and potentially lead to lower overall interest costs.

Pros and Cons

Pros

Flexible Terms. Installment loans in Canada offer borrowers the advantage of flexible repayment terms, allowing them to repay the borrowed amount over time through regular installment payments.

Online Convenience. The ability to apply for installment loans online provides convenience for borrowers. The online application process streamlines the loan application, making it more accessible and efficient.

Credit Check for Better Terms. While it involves a credit check, this can be a positive aspect. Borrowers with a good credit history may secure installment loans with better terms.

Structured Payments. With installment loans, borrowers benefit from structured payments. Knowing the installment loan payments in advance helps individuals budget effectively and manage their financial obligations.

Cons

Interest Rates. One downside is that interest rates can vary, and individuals with bad credit may face higher rates. It's essential to carefully review the terms to understand the overall cost of the loan.

Hidden Fees. Borrowers should be cautious about potential hidden fees associated with installment loans. Some loans may have fees beyond the interest rate, impacting the total payback amount.

Credit Check Requirement. While a credit check can lead to better terms, it may pose a challenge for individuals with bad credit. Some lenders offering credit check installment loans might have stricter eligibility criteria.

Risk of Debt Cycles. For some individuals, the accessibility of installment loans may lead to dangerous loan cycles, especially if used frequently. Borrowers should be mindful of their financial situation and avoid falling into a cycle of continuous borrowing.

How to Get an Installment Loan

Apply for a Loan

  1. Online Application. Start by finding a reputable lender offering online installment loans in Canada. Complete their online application form, providing necessary personal and financial information.

  2. Credit Check. Be prepared for a credit check as part of the application process. Lenders use this to assess your creditworthiness and determine the terms of the installment loan.

  3. Document Submission. Some lenders may require additional documents, such as bank statements or proof of income. Ensure you have these ready to submit for verification.

  4. Loan Approval. Once your application is reviewed and approved, the lender will provide details of the approved installment loan, including the loan amount, interest rates, and repayment terms.

  5. Funds Disbursement. After accepting the terms, the funds are typically deposited into your active bank account. From there, the agreed-upon installment loan payments will be automatically withdrawn according to the payment schedule.

Requirements and Conditions

Requirements

  1. Canadian Citizenship or Permanent Residency. Most lenders offering installment loans in Canada require borrowers to be Canadian citizens or permanent residents.

  2. Age Limit. Borrowers typically need to be of legal age, which is 18 or 19 years old depending on the province or territory.

  3. Active Bank Account. To facilitate fund disbursement and automatic withdrawals for payments, borrowers are often required to have an active bank account.

  4. Proof of Income. Lenders may request proof of income, such as pay stubs or bank statements, to assess the borrower's ability to repay the installment loan.

  5. Valid Identification. Borrowers are typically required to provide valid identification, such as a driver's license or passport, to verify their identity.

  6. Residential Address. Lenders may ask for proof of residence, such as utility bills or a lease agreement, to confirm the borrower's address.

  7. Stable Employment. Having stable employment or a reliable source of income is often a requirement, demonstrating the borrower's ability to repay the loan.

Conditions

  1. Loan Amount. The amount you can borrow through an installment loan in Canada will depend on factors such as your income, credit history, and the lender's policies.

  2. Interest Rates. Interest rates can vary, and they are often determined based on the borrower's credit score. It's essential to understand the interest rates and how they will impact the total cost of the loan.

  3. Repayment Terms. Installment loans come with a set repayment period, and borrowers make regular payments over that time. The terms include the frequency of payments (monthly, bi-monthly, etc.) and the duration of the loan.

  4. Fees. Be aware of any additional fees associated with the installment loan, such as origination fees or prepayment penalties. Understanding all fees is crucial for calculating the total payback amount.

  5. Payment Schedule. Lenders provide a payment schedule outlining when each installment is due. This schedule helps borrowers plan their finances accordingly.

  6. Prepayment Options. Check if the lender allows for early repayment without penalties. Some borrowers prefer paying off the loan ahead of schedule to save on interest.

  7. Default Consequences. Understand the consequences of defaulting on payments. This may include late fees, increased interest rates, or damage to your credit score.

Best Places to Get an Installment Loan

  1. Easyfinancial is known for providing installment loans to individuals with various credit histories, including those with bad credit. They offer a straightforward application process, and funds may be available quickly once approved.

  2. Fairstone is a well-established Canadian lender offering personal loans, including installment loans. They provide a range of loan amounts and terms, catering to different financial needs.

  3. BMO (Bank of Montreal). Traditional financial institutions like BMO also offer installment loans. You can visit a local branch or apply online for personal loans. BMO typically provides a variety of financial products, including installment loans with fixed repayment terms.

  4. Mogo is an online financial platform that offers various financial products, including installment loans. Their online application process is designed to be user-friendly, and they often focus on providing financial solutions tailored to individual needs.

Ways to Receive the Money

  1. Direct Deposit to Bank Account. The most common method is to deposit the loan amount directly into the borrower's active bank account. Lenders often require borrowers to have a valid and active bank account for this purpose.

  2. Electronic Fund Transfer (EFT). Some lenders use Electronic Fund Transfer (EFT) to transfer the loan amount directly to the borrower's bank account. EFT is a secure and efficient way to handle financial transactions electronically.

  3. Cheque Issuance. While less common in today's digital age, some lenders may still issue a physical cheque to borrowers. The borrower can then deposit the cheque into their bank account.

  4. Interac e-Transfer. Certain lenders may use Interac e-Transfer, a popular electronic payment system in Canada, to send funds directly to the borrower. The borrower receives an email or text notification with instructions to deposit the money into their bank account.

Things to Pay Attention to

  1. Loan Agreement Terms. Carefully review the loan agreement, focusing on details such as interest rates, repayment terms, and any hidden fees associated with the payday loan or installment loan product.

  2. Credit Check Policies. Understand the lender's credit check policies for credit check loans. This can impact your eligibility, interest rates, and overall loan terms.

  3. Financial Stress Assessment. Assess your own financial stress and ability to meet the short term loans or personal installment loans payments. Choose a financial solution that aligns with your current financial situation.

  4. Maximum Allowable Cost. Be aware of the maximum allowable cost, which includes all the fees associated with the loan. This is crucial for determining the total payback amount.

  5. Urgency and Timing. Consider the urgency of your needs for more money and the time it takes for funds to be disbursed. Online loans may offer quicker solutions compared to traditional financial institutions.

  6. Reputation and Reviews. Research the financial institution's reputation and read customer reviews. Look for the best financial solution by considering the experiences of other borrowers with similar urgent bills or financial needs in British Columbia or other provinces.

How to Repay an Installment Loan?

  1. Understand Loan Terms. Familiarize yourself with the terms outlined in the loan agreement, including the installment loan payments, interest rates, and any applicable fees.

  2. Set Up Automatic Payments. If possible, arrange for automatic withdrawals from your bank account on the scheduled dates. This ensures timely and hassle-free payments for your online installment loan.

  3. Monitor Bank Statements. Regularly check your bank statements to confirm that installment loan payments are deducted correctly. Address any discrepancies promptly.

  4. Budget for Payments. Incorporate installment loan payments into your budget to ensure you allocate funds appropriately. This helps in avoiding financial stress and late payments.

  5. Consider Early Repayment. Evaluate the possibility of making additional payments or repaying the installment loan early, if allowed. This can potentially save on interest costs and help settle the loan ahead of schedule.

Reasons for Getting Rejected for an Installment Loan

  1. Poor Credit History. A history of missed payments, defaults, or a low credit score may lead to rejection for an installment loan, especially if the lender emphasizes credit checks.

  2. Insufficient Income. Lenders assess the borrower's income to determine their ability to repay. If the income is deemed insufficient to cover the installment loan payments, approval may be denied.

  3. High Debt-to-Income Ratio. A high ratio of existing debt compared to income may signal financial strain, making lenders hesitant to approve an additional installment loan.

  4. Unstable Employment. Lack of a stable job or frequent changes in employment can be a red flag for lenders, as they seek assurance of a steady income to support the loan repayment.

  5. Incomplete Documentation. Failure to provide necessary documentation, such as proof of income or identification, can result in rejection during the loan application process.

  6. Previous Loan Defaults. If there is a history of defaulting on previous loans or having a record of late payments, lenders may view the borrower as high risk, leading to rejection.

  7. Bankruptcy or Foreclosure. Recent bankruptcy or foreclosure can significantly impact a borrower's creditworthiness, increasing the likelihood of rejection for an installment loan.

Alternatives

  1. Payday Loans. Payday loans are short-term, high-interest loans typically repaid on the borrower's next payday. However, they often come with high fees and should be approached with caution due to their costly nature.

  2. Credit Cards. Credit cards provide a revolving line of credit. Borrowers can make purchases up to a predetermined limit and pay back the balance over time. Interest is charged on the remaining balance if not paid in full by the due date.

  3. Lines of Credit. A line of credit allows borrowers to access a predetermined credit limit as needed. Interest is charged only on the amount borrowed, and payments can be flexible.

Editorial Opinion

In the landscape of Canadian financial services, short-term installment loans have become a prevalent option for individuals seeking financial assistance, offering flexibility and convenience. With online personal loans, borrowers can access funds swiftly, addressing urgent needs like car repairs or unexpected expenses. The availability of a range of installment loans caters to diverse financial requirements, allowing Canadian citizens the flexibility to choose the terms that align with their specific circumstances. However, caution should be exercised to fully comprehend the implications, including the annual percentage rate and the commitment to repaying in one lump sum. While installment loans from reputable financial institutions provide a timely solution for those in need, borrowers are encouraged to navigate this financial tool judiciously, considering their ability to repay and exploring alternatives before deciding to borrow money quickly or at any time.

Important

Keeping your Debt-to-Income (DTI) ratio below 30-40% of your monthly income is crucial. This will help you avoid potential financial problems in the future. Additionally, always assess the necessity and feasibility of taking a loan, ensuring you can comfortably manage its repayment.

How to Choose a Lender

  1. Make sure to confirm whether the lender is licensed to operate in your province. You can verify this information with your state regulator or attorney general.

  2. Check if the lender is a member of a reputable association, such as the Canadian Lenders Association (CLA). Membership in such organizations may provide an extra level of reliability.

  3. Carefully review all the terms and conditions of your payday loan contract.

  4. Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.

  5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.

  6. Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.

Methodology

At Finanso, we've carried out a comprehensive analysis of over 70 lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.

FAQ

What are two major types of installment loans?

There are several loan classifications, but the best-known and largest are loans secured by collateral and loans not secured by collateral. Loans secured by collateral are less risky for the lender and it is possible to obtain lower interest rates. Unsecured loans are loans not secured by collateral. Such options can be beneficial for borrowers not willing to risk their assets but may come with higher interest rates. Loans secured with collateral usually offer higher loan amounts and better interest rates.

What is considered an installment loan?

An installment loan is an amount of money borrowed from the lender. Repayment is made in parts called installments as you receive it from the lender. Installments may include immediate principal and interest payments. Installment loans can be applied online or offline, or both ways.

Do installment loans hurt your credit score?

An installment loan in and of itself cannot hurt your credit score, but if you have not properly serviced the loan, repaid it on time, and worked with the lender to find a solution, you will face some negative consequences. First of all, the lender might cooperate with the credit bureau, and then your credit score will deteriorate until you make an effort to resolve the problem.

What are the fees of an installment loan?

The fees associated with an installment loan can vary based on the lender, loan amount, and terms. Common fees include an origination fee, which covers the cost of processing the loan, and late payment fees for missed or delayed installment loan payments. It's essential for borrowers to carefully review the loan agreement to understand all applicable fees, including any charges for prepayment or additional services. Additionally, the annual percentage rate (APR) provides a comprehensive view of the total cost of the loan, incorporating both interest and fees, enabling borrowers to make informed decisions about the affordability of the installment loan.

Can I repay an installment loan early without penalties?

Many installment loans in Canada allow borrowers to repay the loan before the scheduled end date without incurring prepayment penalties. However, it's essential to review the loan agreement carefully, as terms can vary between lenders. Early repayment can be advantageous for those looking to save on interest costs and settle the loan ahead of schedule.

Loan Terms