Loans Canada Launches Free Credit Score Portal And Is Recognized As One Of Canada’s Top Growing Companies
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
For this post, we’ve teamed up with our partners at Fairstone
When you’re in a financial bind, the last thing you need is another high payment weighing you down. Choosing the right loan type, payment frequency, and term can lower your loan payments, ensuring you stay on track with debt repayment.
Our partners at Fairstone shared 6 ways to make loan payments more affordable:
If you have multiple balances (credit cards, loans or financing plans), you could save on interest charges and simplify your payment schedule by combining your bills into a single debt consolidation loan. Debt consolidation loans can result in lower, more manageable payments at a fixed interest rate over the duration of your loan term. With budget-friendly loan payments, you’ll be more likely to stay on track with your balance and avoid missed payments. Missed credit card payments can sometimes result in an increased interest rate, making it even harder to get out of debt. If you’re in the habit of paying only your minimum payment each month or missing credit card payments entirely, debt consolidation may be the right solution for you.
Choosing the right loan product can result in savings depending on your financial goals. If you’re a homeowner, a secured personal loan or home equity loan (backed by the value of your house) may be your best borrowing option. Homeowners can access lower loan payments through a combination of a lower interest rate and a longer loan term. Learn why many borrowers who own a home choose a secured personal loan.
Not a homeowner? An unsecured personal loan from Fairstone doesn’t require you to own a home to borrow money – keep reading to learn how to lower loan payments on an unsecured personal loan.
Most lenders offer multiple payment frequency options to choose from. The three most common payment frequencies are bi-weekly, semi-monthly and monthly. While many borrowers choose payment frequency based on convenience, it’s important to understand how frequency affects interest charges.
When establishing a loan agreement with your lender, you’ll be required to choose a loan term (the amount of time you take to pay off your loan). Generally, secured personal loans offer longer loan terms, enabling you to spread out payments over a longer period of time. Choosing a longer loan term will reduce your loan payment – giving you added room in your budget. However, a longer loan term means you’ll incur more interest charges over time.
Any lump-sum payments go directly toward the principal of your loan balance, meaning you’ll pay less interest overall and may even pay your loan off early. While extra payments won’t lower your regular payments, they can reduce the amount of interest you’ll pay on your loan.
Late payments collect interest until they are paid and can negatively impact your credit rating. If you anticipate late or missed payments, contact your lender to discuss your options. Your lender may allow you to make a partial payment or defer your loan payment. If you proceed with one of these options, the amount you owe will still need to be paid at the end of your loan term or deferral period.
By understanding how all these factors impact your loan, you can reduce borrowing costs and save money, so you can pay off debt faster.
Looking for some extra room in your budget? You could get a loan up to $50,000 from Fairstone – and now’s the perfect time. Take out a Fairstone loan between May 6-31 and you won’t have to make a loan payment until summer.* Take advantage of this offer to consolidate debt, cover unexpected expenses and more. Go to Fairstone.ca and get a loan quote to find out how much money you could qualify for and what your payments might be. No obligation and no impact to your credit score.
*No payments until summer applies only to loans booked on or after May 17, 2021, in Quebec – a 35-day payment deferral offer – and on or after May 6, 2021, in the rest of Canada – a 45-day payment deferral offer. Summer begins June 20, 2021. Interest begins to accrue from the date the loan is booked at the interest rate disclosed in the loan and is not waived.
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Don’t pay until March with this offer from our partner, Fairstone.* Ends January 31st.
New Offer! Get up to $2,000 cashback + a $50 bonus on signing up. Conditions apply.
Earn an average 5%¹ cash back at thousands of partners and at least 0.5%² cashback guaranteed.
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