Life would be easy if everyone simply had enough money to do and purchase whatever they wanted. Unfortunately, that isn’t the case. While many will make enough to do so, that all depends on the cost of living in your area. Sometimes it’s necessary to get a loan to help pay for the things you need if you live in an expensive area.
For example, with Mississauga being the 14th most expensive place to live in North America, many residents will have to take out installment loans to pay for things like large purchases, emergencies, vehicles, and more. These installment loans can be a lifesaver. Keep reading for more information about taking out an installment loan in Mississauga.
Learn how to find the right personal loan for your needs, here.
Payment Plans Available
Installment loans can come in all different shapes and sizes. One of the major differences between them all is the payment plan they will utilize. The payment plan of your loan will dictate how often you are making a payment. This can also have an impact on how large your payments are and how much you end up paying in interest.
In general, there are a few different payment plans available with most loans and they include:
- Weekly payments
- Bi-weekly payments
- Twice monthly payments
- Monthly payments
Now, the one you choose is completely up to you. If you prefer making smaller and more frequent payments, going with weekly is probably right for you. However, if you want to make as few payments as possible and are comfortable with larger ones, paying monthly will work. There are many options and most lenders will be willing to work with you to come up with an option that works best.
What happens if you can’t make your payments on time? Find out here.
Of course, some lenders will only offer one of the above options, so be sure to find out all the important information before applying for a loan with a particular lender.
Payday Loans vs. Installment Loans
Can You Get an Installment Loan With Bad Credit in Mississauga?
So while getting an installment loan seems easy enough, what about if you have bad credit? Many who have bad credit are fearful that it will disqualify them from being able to get a loan. Well thankfully, this isn’t the case. Getting a loan with bad credit might be a little more expensive or difficult, but it is definitely possible. By this we mean they will often have higher interest rates and potentially stricter terms or more fees to deal with, as well. However, this isn’t always the case.
Many lenders in Mississauga and other cities throughout the province are willing to work with a wide range of individuals, including those with bad credit. These lenders will often use other ways to qualify people for a loan. Most of the time, it is done by looking at their bank statements or debt-to-income ratio to see how risky you are. Also, if you are willing to put up some form of collateral that can also significantly lower your risk in the eyes of many lenders.
Of course, it is also possible to hold back on getting a loan until your credit is in a better place. If you implement healthy financial changes such as making payments on time and using credit effectively, you might be shocked at just how quickly you will begin to see your credit score increase.
Take a look at this infographic for more information about credit scores.
When Does an Installment Loan Make Sense?
So in what situations does it make sense to take out an installment loan in Mississauga? Many of us need or want money for a lot of things, but when should we take out a loan and when should we simply save up? Well, taking out a loan is good in situations like:
- When you have an emergency and need to cover the cost
- As an alternative to a payday loan
- When you want to make a large purchase that you simply cannot pay for in cash
- To cover unexpected travel that you didn’t budget for
Of course, when taking out an installment loan, ensure it is for something you need. Taking out a giant loan for a brand new TV or expensive items of clothing isn’t always the best idea unless you absolutely know you can afford it in the long and short run.
In addition to needing the loan for a good reason, be sure to only take out a loan that you will be able to pay back. A loan is not free money; you will eventually need to be able to pay it back in full, plus any interest. If not, you could end up digging yourself into a financial hole you can’t get out of.
How do your loan payments affect your credit? Click here to find out.
The Right Installment Loan For You
Are you looking for an affordable installment loan to cover the cost of an emergency or large expense? Loans Canada can help by matching you a lender in your area.