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While incomes in Winnipeg have increased a lot in recent years, the city still struggles with a sizable chunk of their population living in poverty. If people in Winnipeg simply don’t make enough money to get by, they will often rely on certain types of loans to make large purchases or to cover the cost of unexpected expenses.
While there are different types of loans out there, many Winnipeg Borrowers fall within the umbrella term of an “installment loan”. This is a loan that is repaid over a predetermined amount of time with a number of scheduled payments. Most student loans, mortgages, and car loans all fall under this type of loan. Installment loans can normally take anywhere from a year up to a few decades in the case of large mortgages.
Interested in reading about more loan types for credit users? Check this out.
Payment Plans Available for Installment Loans in Winnipeg
When securing an installment loan in Winnipeg, there are a variety of potential payment plans that will be available to you. These options include:
- Weekly – You will make a payment each week toward your loan.
- Bi-Weekly – You will make a payment every two weeks toward your loan.
- Monthly – You will make a payment each month toward your loan.
Of course, depending on the lenders you look at in Winnipeg, other options could be available, but these are among the most popular. So how do you choose which plan to go with? Well, this will depend on a couple of things. First of all, it will depend on how much money you have coming in and when it comes. If you only get paid once a month, making frequent payments might complicate things.
Another thing it will depend on what you’re comfortable with. Some people are comfortable with making one large payment every month toward their loan, while others prefer a smaller payment every week. Also, certain lenders in Winnipeg might only offer one option, so be aware of that too, as you won’t always have flexibility in this situation.
Check out this infographic to learn all about how credit scores are calculated.
Can You Get an Installment Loan in Winnipeg with Bad Credit?
While many people in Winnipeg have sky-high credit scores and can get any loan they want, others have average or even below average credit. These individuals will likely still need to borrow money from time to time, but can they get approved for an installment loan with bad credit? The simpler answer is yes.
Bad Credit Loans in Winnipeg
Even those with bad credit in Winnipeg are likely still going to be able to secure an installment loan. However, the loan itself might not be as attractive, and you might need to work with an alternative lender. While many lenders in Winnipeg will use a credit score to decide how much to lend a person (and at what rate), this isn’t always the case.
Read this to find out what bad credit lenders look at when assessing loan eligibility.
Some lenders in Winnipeg will use things like bank statements, income, debt to income ratio, and assets to decide how risky it is to lend someone money. A great way to still get a decent interest rate on a loan when you have bad credit is to offer up some collateral and get a secured loan.
However, if you want a better interest rate and some less-strict terms, you could always build your credit up before applying. This can be done by:
- Ensuring you make your debt payments on time
- Using credit appropriately and intelligently
- Keeping your credit utilization low
- Refrain from applying frequently for new credit
To see some more ways of improving your credit this year, look here.
Installment Loans vs. Payday Loans
We Recommend Installment Loans For…
Installment loans are incredibly versatile and can be used for a variety of different costs in Winnipeg. There are many situations and instances where getting an installment loan makes sense, such as:
- To make large purchases that you simply cannot afford to pay for in cash
- To cover the cost of an emergency of any kind
- To pay for unforeseen travel expenses
- To try and rebuild your credit by intelligently borrowing
- As an alternative to a payday loan if you are seriously in need of some cash
Of course, these are only some of the options and many installment loans can be used in dozens of different ways. Also, whatever reason you have for getting an installment loan, you need to make sure it fits within your budget. It can be tempting to borrow more than you need, but you need to remember that you will have to pay back everything that you borrow (plus interest). Only get a loan for what you need and ensure you can afford the payments.
The Right Installment Loan For You
If you want to learn more about installment loan options in Winnipeg, be sure to reach out to Loans Canada. We are confident we can find the right loan for you.