- Any credit accepted
- Rates from 6.99%
- Doesn't affect your credit
- Loans up to $50,000
- Re-establish your credit
- Apply once, get multiple options
If you have a pressing need to access money quickly in order to cover a major expense in Alberta, then an installment loan may be the right option for you. While there are several different types of loans out there that you may want to consider, an installment loan is just one way to get your hands on funds quickly while taking advantage of convenient repayment terms.
To learn more about loans in Alberta, look here.
An installment loan is simply a type of loan that involves taking out a specific loan amount that will need to be repaid within a specified loan term. During this repayment period, the loan amount will be paid back in installments, usually in the form of fixed monthly payments until the full outstanding balance is repaid.
Want to know how your payment history affects your credit score? Read this.
Each payment made will include a principal portion as well as an interest portion. The exact ratio will depend on the loan amount taken out and the interest rate charged by the lender.
While payday loans and installment loans are both convenient ways to get access to cash fast in Alberta, there are significant differences between them. Most predominantly, the main differences are:
Payday loans usually come with very short loan terms. Typically, the loans need to be paid back by the time the next payday rolls around, hence the name. Payday loans also have to be paid back in one lump sum as opposed to in installments.
These types of loans are also only for limited amounts, usually no more than $800 or so, while installment loan amounts can be much higher, depending on the credentials of the borrower. Furthermore, payday loans usually come with extremely high-interest rates and fees, which isn’t necessarily always the case with installment loans in Alberta.
Interested in more information about the payday loan cycle of debt? Click here.
There are various types of installment loans in Alberta. For instance, auto loans, home loans, and student loans are all versions of installment loans. In these cases, the loan amount given is to be used for one specific purpose, which is either to pay off a car, a house, or college tuition, respectively.
However, you can also take out a personal installment loan, in which case you can use the money for any purpose you see fit. For instance, common reasons for taking out these types of loans in Alberta can include:
The list can really go on and on. As long as you are able to make your regular monthly payments on time and in full every month, your lender in Alberta shouldn’t care what you use your loan for.
Check this out to see what happens when you can’t make your loan payments on time.
A credit score is an important factor that lenders consider before approving borrowers for installment loans in Alberta. Typically, lenders like to see credit scores of at least 650 before approving loan applications, though the number should ideally be even higher than that.
Borrowers in Alberta who have a credit score in the 700s are more likely to not only get approved for an installment loan but also get a lower interest rate, which makes the overall loan more affordable.
On the other hand, borrowers in Alberta with a score of less than 650 will be less likely to get approved. If they are approved, they will probably be stuck with a higher interest rate in order for lenders to be more protected in case the borrower defaults on the loan.
Trying to understand your credit score and credit rating? Look at this.
However, there are bad credit lenders in Alberta who work specifically with borrowers with bad credit, so it is certainly still possible to secure an installment loan with a score that’s considered less than par.
That said, borrowers in Alberta with poor credit should make the effort to improve their credit scores in order to improve their chances of securing an installment loan at more favourable interest rates.
Check out this infographic to learn how the credit bureaus calculate your credit score.
Installment loans have several different payment plans for borrowers to choose from. The monthly payments will vary depending on specific factors, including the following:
Consider these factors when you’re shopping for low-interest rates.
Installment loans in Alberta can come in really handy when a major expense needs to be covered but your bank account isn’t equipped with enough money. If you’ve got a decent credit score and a steady income, getting approved for an installment loan with a reasonable interest rate shouldn’t be a problem. If you live in Alberta and are in the market for an installment loan, Loans Canada can help.
When you need to borrow money, there are many options to choose from. But finding the right option can be hard. Let's find out which one is right for ...
If you are looking for loans like Fairstone, you can find them on Loans Canada. These Alternative lenders offer secured and unsecured loans.
Unsecured vs. secured loan: do you know which one is the right option for you? Find out which loan best suits your needs.
Are you struggling to repay your payday loan debt? Check out these payday loan debt relief options in Canada.
Are you struggling to get a loan due to bad credit? Find out what are subprime loans and how you can get one.
Windmill Microlending offers skilled immigrants of any status a 5.95% interest loan to pay for books, certification and career enhancing
Have you recently made Canada your new home? Are you looking for loans to help cover important expenses? Find loans for immigrants in Canada.
An AZ license in Ontario is expensive. Find out if you can get government funding for an AZ license in Ontario.
While Buy Now Pay Later (BNPL) services may be convenient, it does come at a price. Here's what can make BNPL services more expensive than you think.
Did you know the criminal interest rate is dropping from 47% to 35% APR ? Find out how it will affect your ability to qualify for loans.
Get expert tips and guidance from a community of renown personal finance experts right here at Loans Canada. We're here to help you stay informed so you can make the best financial decisions.