Compare The Best Providers For Installment Loans Montreal November 2021

Written By Bryan Daly
Filters

Loans Canada

Amount
Up to $50,000
Rate
2.00% to 46.96%
Term
3-60 months

Consumer Capital Canada

Amount
$500 - $12,500
Rate
19.99% to 34.99%
Term
No minimum term

Fairstone Financial

Amount
Up to $50,000
Rate
19.99% - 39.99%
Term
6 - 120 Months

LendDirect

Amount
Up to $15,000
Rate
19.99% - 46.93%
Term
No minimum term

Lendful

Amount
$5,000 - $35,000
Rate
Starting at 9.99%
Term
6 - 60 Months

LendingMate

Amount
$2,000 – $10,000
Rate
43%
Term
12 to 60 Months

Loan Away

Amount
Up to $5,000
Rate
19.9% to 45.9%
Term
6 - 36 Months

LoanMeNow

Amount
$500 - $1000+
Rate
28 to 32%
Term
3 Months

Mogo Finance

Amount
$300 – $35,000
Rate
5.9% to 47.72%
Term
3 - 60 Months

Spring Financial

Amount
Up to $15,000
Rate
14.99% to 46.96%
Term
6 - 12 Months

Living in any major Canadian city can be pricey and Montreal is no exception. Paying for all your regular expenses using just your savings or credit cards can also be costly, inconvenient, and leave you with no money left to live your life. On the other hand, getting an installment loan in Montreal might be of great help, giving you an easy and affordable way to cover your expenses without forsaking all of your hard earned cash.

More interested in a personal loan in Montreal? Take a look at this.   

How Can I Get an Installment Loan in Montreal?

An installment loan is a type of financial product that’s provided by the majority of lending sources in Canada, including banks, credit unions, alternative, private, and bad credit lenders. These types of loans come in lump sums of money and are deposited straight into your bank account, usually a few business days following your approval. You’ll then pay that money back through a series of equally divided payments, including an interest rate until the full loan sum has been returned.

When you apply, your lender is likely to examine elements such as:

  • Your monthly and yearly income
  • Your employment record
  • Your credit report
  • Your cosigner’s financial and credit-related health (if you use a cosigner)
  • The value of your assets (if you plan to offer collateral as loan security)
  • Your current debts and payment history
  • Your debt-to-income ratio

Once approved, you can pay your loan through using one of several payment options:

  • Weekly – One payment per week, for a total of 52 payments a year
  • Bi-weekly – One payment every two weeks, for a total of 26 payments a year  
  • Monthly – One payment per month, for a total of 12 payments a year

Before You Apply!

Not all lenders offer each of these payment options. Some may only allow for one payment on a monthly basis, so make sure to ask your lender about this, as well as the elements above. That being said, the option that works best for you will depend on what your income and savings look like, as well as what’s comfortable for you.

For example, if you work a wage-based job that affords you one paycheck every two weeks, you might want to choose the bi-weekly option. However, if you don’t have a steady income (freelance, part-time, etc.) you might be safer with monthly or bi-monthly payments, as they won’t be so frequent, giving you time to save up.

Read this before you apply for any loan.  

Should I Get an Installment Loan or a Payday Loan?

During your search for financial solutions in Montreal, you may have discovered payday loans and thought that, in certain ways, they might be a better choice than installment loans. Not so fast! There are a few significant details that you should know about payday loans, including but not limited to:

  • They have much higher interest rates than installment loans in Montreal 
  • They have much shorter payment plans (2 weeks, without exception)
  • Defaulting (missing your payment date) results in a hefty penalty charge
  • Physical payday loan lenders have now been banned in Quebec
  • This leaves only online payday loan sources to be found in the province
  • Online payday loans come with a higher risk of scamming and identity theft
  • The debt caused by payday loans can spiral out of control very easily

How to Break The Payday Loan CycleCheck out this infographic about the effects of the payday loan cycle.

Contrarily, With Installment Loans

  • Interest rates are based on your credit health and financial strength, as well as your lender’s policies. If you can prove you’re a strong candidate, you should receive a lower, more affordable rate.
  • Payment plans are usually negotiable, meaning you can extend or shorten your payment term, as well as increase or reduce your payment amount, if necessary.
  • While defaulting may still result in a penalty, it’s still easier to negotiate with your lender and prove to them that this won’t happen again.  
  • As we said, installment loans in Montreal can be found with almost any type of lender, whether physical or online based.
  • The possibility of scamming or identity theft is reduced when you have the option of visiting a physical lending location, such as a bank.

Click here for even more differences between payday and installment loans.

Why Is a Borrower’s Credit So Important?

When you’re applying for an installment loan in Montreal, having good credit can be a huge advantage.

Having Good Credit (credit score of 660 or higher)

In Canada, credit scores may range from 300 to 900. The closer your score is to 900, the less risky a potential lender will consider you and the better your approval odds and interest rates will be. Having good credit shows that you’ve had little to no problem keeping up with payments for your existing or past credit products. Essentially, good credit will make your loan more affordable and allow you to secure a larger amount of money if you wish.

Check out these surprising perks of having a good credit score.

Having Bad Credit (credit score of 560 or lower)

Bad credit will have the opposite effect when it comes to any kind of loan or credit product. A bad credit score may mean that you’ve been late or short on, or even worse, missed a bunch of payments completely, ultimately turning you into a risky borrower. Being that, in your lender’s eyes, you have a larger chance of not paying them back on time, they’ll often charge you a higher interest rate and won’t allow you to borrow as much money.  

How Does Bad Credit Affect Daily Life?Want to see how bad credit affects your daily life, check out this infographic.

Can I Apply For an Installment Loan With Bad Credit?

Generally speaking, a score of 650 or higher will secure you a decent loan amount at a reasonable interest rate. Nevertheless, if your credit score is lower than that or you qualify as having bad credit, you can still get approved for an installment loan in Montreal. You can do this by applying with an alternative or private lender, or one that deals specifically with clients who have bad credit. There are even some lenders out there that don’t use your credit at all during their application process.      

Things to know about bad credit installment loans:

  • Being that bad credit lenders are taking more of a risk on you, they’re likely to charge higher interest rates than traditional installment loans.
  • Payment terms and regulations might be more strict, your negotiating power may be more limited.
  • Having bad credit can make you vulnerable to manipulation, scamming and identity theft. Be careful of any “lender” who offers you a deal that’s too good to be true, and always research them properly before applying!

Need more information about bad credit loans in Montreal? Click here.

Recommended Uses for an Installment Loan?

Remember, an installment loan is going to show up directly in your bank account as cash that you can use for pretty much anything. That being said, it’s best to take your time and think about why you really need the money. For example, unnecessary items, such as consumer goods are better left to your credit cards.

On the other hand, apply for an installment loan in Montreal might be a better option when:

  • You have a bunch of unpaid debt and late charges that need to be covered
  • Your home or car needs to be repaired in some way
  • You’re trying to increase the value of your home through renovations or additions
  • You need to cover the cost of your medication or a medical procedure
  • Any financial emergencies occur, such as loss of employment

Loans Canada Can Help

If you’re looking for a reliable source of installment loans in Montreal, we can help you find it. Contact Loans Canada today or fill out an application below. It’s simple, quick, and effective!   

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