- 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
Like other areas of British Columbia, the provincial capital of Victoria has become a popular place to call home. However, it can also be quite expensive because of the high price of real estate in Victoria. As a result, pouring all your income and savings into your housing costs can leave you with a lack of funds for all your other typical expenses.
If you’re struggling to pay for those essential costs, an installment loan might be the perfect solution. Want to know what these loans are and how you can get one? Good, because we have the answers.
Click here to learn how you can get a loan online with affordable monthly payments.
Available at most lending institutions in Victoria, an installment loan is a one-time deposit of cash into your bank account. You would then repay the money through a series of equally divided payments, otherwise known as “installments”, over a specific time period that you and your lender will arrange beforehand. These installments will include an interest charge, which is what your lender in Victoria charges for their services.
Your payment plan will be formulated based on your financial requirements and can last for several months to a few years, depending on how much money you requested. Although many borrowers in Victoria repay their loan on monthly basis, some lenders will give you the option of weekly or bi-weekly installments, which would effectively shorten your payment plan. While some lenders in Victoria only allow one of these payment options, the shorter your plan is, the more you’ll save on interest. That said, the plan you choose should be based on your financial needs.
Wondering if and how you can beat your lender’s interest rate? Find out here.
A good thing to know before you apply for an installment loan in Victoria is that the lender you apply with will be able to check your credit to calculate your creditworthiness. They do so by requesting a copy of your credit report from Canada’s major credit bureaus (Equifax and TransUnion).
Read this to see which credit bureau your lender might check.
Your credit report is a comprehensive document that lists all your credit-related transactions over a certain number of years, including the payments you’ve made for an active loan, credit card, or other credit product. If your lender sees a healthy-looking credit history, they’ll be more likely to approve you for a larger loan with a more reasonable interest rate.
Your credit score will be included in their copy of your report. This three-digit number, ranging from 300 to 900, sums up your creditworthiness in a more simple fashion. The higher your score is, the more creditworthy you are. While most lenders in Victoria will approve you with a score of around 680 or above, your score will need to be as high as possible if you want a large unsecured installment loan.
Bad credit qualifies as having a score within the 300-560 range. Although there are many ways this can occur, typical causes of bad credit can include defaulting on credit account payments, leaving uncorrected errors on your credit report, having your identity stolen or falling victim to debit fraud. No matter what the cause, however, having bad credit can cause your lender to deny your applications because they may suspect that you won’t pay them back properly. At the very least, your approval would come with a lower credit amount, but a higher interest rate, costing you more over time.
Check out the five most common credit report errors, here.
One of the best things about an installment loan is that you can improve your credit score whenever you make a payment on time. However, that can’t happen if your bad credit leads to a rejected application, which is common with banks and other prime lenders in Victoria, where approval standards are strict. In that case, you may need to apply with a subprime source, like an alternative or private lender in Victoria. There are even some lenders that deal specifically with clients who have bad credit.
Planning to apply with a bad credit lender? Read this before you do.
In that case, your approval and interest rate will be based on other factors, namely your ability to make payments on time. The less of a financial risk you pose to them, the more inclined they’ll be to approve you and give you a better interest rate.
So, if you don’t have good credit, you may need other strengths, such as:
Click here for more information about credit scores.
If you’re lucky, you may even be able to find a lender in Victoria that doesn’t perform credit checks as part of their application process, which may be helpful when you:
Moving to Canada? Make sure you have these documents.
Either way, the best thing you can do to be approved for a no-credit-check installment loan is prove to your lender in Victoria that you will pay them back responsibly, which you can do by providing:
Speaking of loans that don’t involve credit checks, another product that you can easily find online or on the streets of Victoria is the payday loan. Typically these are small loans of $1,500 or less, and they can be appealing because they are very easy to get approved for. No security and, of course, no credit check necessary. Unlike the average installment loan, all you need is a confirmable source of income, a British Columbia address, and proof of an active bank account.
Now, before you go running to your nearest payday loan lender in Victoria, be warned. As great as payday loans appear on the surface, they can be extremely dangerous for your finances because:
The negative effect of payday loans can be so bad that many provinces in Canada are attempting to ban them altogether. Thankfully, the British Columbia government has established rules that limit the harm payday loans can cause. For instance, it’s now illegal for a lender to extend or rollover a payday loan, nor can they ask you to sign a form that assigns your wages directly to them as payment. Although they are generally easier and faster to get approved for than an installment loan in Victoria, they are usually not worth the risk unless you have a serious financial emergency to deal with.
Check out this infographic to learn more about the payday loan cycle of debt.
An installment loan is a responsibility, not a privilege, so it’s best if you don’t waste your money on any consumer goods that aren’t essential. In fact, it’s far healthier to use it for things you might actually need and use, such as:
Remember, installment loans can be found in many places throughout Victoria. What’s better, Loans Canada can easily connect you with those sources. If you’d like more information or you’re interested in applying, don’t hesitate to contact us today.
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