Installment Loans and Lenders
There is a way out for these borrowers and a better option for people who truly need a one-time loan to cover an emergency expense. A small installment loan is available from many lenders in Canada, such as Tribecca, Citifinancial, Loans Canada and EasyHome. Many major metro areas also have small, private lenders willing to offer installment loans for those in need. Installment loans are named for the installment, or monthly payment, that you make to the lender each month until the loan is paid off. These loans have much lower interest rates than payday loans and help you build credit with a reputable lender. You can choose a unsecured or secured loan, though if you have a poor credit history, an unsecured loan may not be an option for you. Under a secured loan you are required to put up collateral, or personal property, that serves as a guarantee that you will pay the loan as you promised. This is usually a vehicle or home that you own. This makes the loan less risky for the lender and often will encourage them to offer you a lower interest rate. If you do not pay your loan as promised, the lender can make legal advancements to secure the property, however, most people with secured loans pay them timely and the lender has no legal right to take possession of your property unless you default on the loan.
Working with a responsible lender can help you get out of the cycle of payday loans and get you on the path of not living paycheck to paycheck. Building credit with a reputable finance company will help you in the future to secure a home or automobile loan and allow you to get lower interest rates than those who are not already banking customers. Best of all installment loans can give you peace of mind that you have taken control of your financial situation and allow you to sleep at night.
For info on the pros and cons of a personal loan, click here.