Second Chance Installment Loans

Second Chance Installment Loans

Written by Caitlin Wood
Last Updated November 3, 2021

Is your credit less than stellar but you really want to work on improving it? Are you determined to not let your bad credit hold you back? Are you looking for a second chance to help you get back on track? If you answered yes to any of these questions then a second chance installment loan might be exactly what you’ve been looking for and exactly what you need to turn your financial life around.

Finding a loan that best suits your current financial issues can seem like an impossible task, most banks and institutional lenders just aren’t willing to work with credit-constrained individuals these days. This is exactly why finding the right lender should be your number one goal, a lender can and will be the difference between being approved and being rejected. A second chance installment loan will not only give you the money you need, but it can also help you build your credit and improve your overall financial health.

What Is A Second Chance Installment Loan?

Second chance installment loans are for credit-constrained Canadians who need help with their finances. No one is perfect and no one’s finances are perfect. But we still believe that all Canadians deserve access to affordable and safe financing, no matter what their financial pasts look like.

Second chance installment loans offer those who have made mistakes with their money in the past another chance to correct those mistakes. Banks and other institutional lenders focus mainly on a potential borrower’s credit score, this, of course, makes it very hard for anyone with a bad credit score to get approved for the loan they need. Private lenders who are willing to offer second chance installment loans to those who have bad credit. More often than not private lenders won’t even pull a person’s credit history.

Your ability to make the monthly payments necessary to pay off your installment loan in full is one of the most important factors, if not the most important for second chance installment loan lenders. So if you have the ability to make monthly payments on time then a second chance installment loan might be the exact help you’ve been looking for.

What To Expect From A Bad Credit Installment Loan

APR2.99 to 46.96%
Loan Amount0 – 50k
Loan Term3 months to 120 months
FeesNo applications fees

What Can I Use A Second Chance Installment Loan For?

Depending on the type of installment loan you choose, a second chance installment loan can be used for many reasons. For example, a personal installment loan can be used for anything and everything. Car repairs, medical expenses, large purchases, unexpected expenses, and debt consolidation are just some of the things you can use a second chance personal installment loan for. 

However, it is recommended that you only take out a loan when you actually need it. Using a loan for frivolous purchases is dangerous as it is a sure-fire way of getting yourself into insurmountable amounts of debt. 

How Do I Apply For A Second Chance Installment Loan?

First, you must find a reputable lender who offers second chance installment loans to people with less than great credit histories. While this might take a while it’s not as hard as you might think it is. Here’s what to do:

  • You’ll have to start by doing some research.
  • Avoid payday lenders at all costs (this might take some extra work as payday lenders love to exploit those who feel like they need a second chance.)
  • Ask lots of questions and don’t be afraid to walk away.
  • Look for a lender whose application is online (this will make the whole process quick and easy)
  • Finally, only settle for a lender who you feel comfortable working with

Once you’ve chosen the best lender for you and your financial situation you should get in contact with them and then fill out their application for an installment loan as soon as possible. The sooner you start the process the sooner you’ll get the installment loan you need and be able to start your journey toward a better financial future.

Fid out why a personal loan is better than a payday loan.

What Documents Do I Need To Apply For A Bad Credit Installment Loan In Canada? 

Depending on what type of installment loan you need, the documents you’ll need to provide will vary. However, in general, there are basic documents that every lender will need in order to verify your identity and ability to pay. These are some of the following documents you may need to provide when applying for a bad credit installment loan in Canada: 

  • Government-issued photo ID – to verify your identity
  • Pay stubs, bank statements – to verify income
  • Bank statements – to verify debt-to-income ratio

How Long Will I Have To Pay My Installment Loan Back?

It all depends on the lender you choose to work with and the terms you agree upon. Most lenders and most installment loans are different, that’s why it’s very important that you choose a lender who offers the type of installment loan you’re looking for. The great thing about most second chance loans is that they’re almost always installment loans. What this means is that you’ll only have to make one easy to afford payment a month (until your loan is paid off completely). The amount you owe each month will be a set number so you’ll always know how much you need to save and be able to easily budget for it. As a rule of thumb, if you require a larger loan you should expect a slightly higher monthly payment and a longer loan term. But if you only require a small loan you’re monthly payment will be lower and you’ll be able to pay off your loan in a shorter amount of time.

How Does Bad Credit Affect Daily Life?

Advantages And Disadvantages Of A Second Chance Installment Loan

Installment loans are paid over longer periods, allowing you to make smaller payments. This, in turn, reduces the financial burden you may experience from paying a large one lump sum payment. The less strict requirements for second chance installment loans, increase the risk of defaults for lenders. As such, high-rates are applied to compensate for the risk taken.  
Along with affordable payments, each payment you make is reported to the credit bureaus, which help you build your creditSome lenders charge origination fees, pre-payment penalty fees, and other related fees. 
Second chance installment loans accept borrowers with credit profiles that are less conventional. Whether you have poor or thin credit, you have a chance, with second chance installment loans.   
Installment loans tend to be flexible with their payment schedule. You have the opportunity to choose the length of the term as well as the frequency of payments.  

Bad Credit Installment Loans FAQs

Can I get a second chance installment loan without a credit check? 

Yes, second chance installment loans are made for bad credit borrowers in Canada. There are countless options available for bad credit installment loans that do not require a credit check. Many lenders can be found online, however, rates for bad credit installment loans are often higher than regular installment loans. 

What rate can I expect to get for an installment loan for bad credit in Canada? 

Rates for a bad credit installment loan can easily range between 5% and 30%. Sometimes it may even go as high as 40%, depending on the lender you go with. It is important you do your due diligence by comparing lenders before settling with any one lender in Canada.

What type of bad credit installment loans are available in Canada? 

There are many types of loans that are installment loans. Mortgages, personal loans, and car loans are just some examples of common installment loans. 

Get Your Second Chance Today!

Today could be the day you finally take back control of your finances and get the second chance you deserve. Apply for an installment loan through Loans Canada and avoid rejection from banks, predatory lenders, and high-interest credit card debt. The process is quick and easy to follow. So, what’s stopping you from getting the installment loan you want and the second chance you deserve?

Rating of 5/5 based on 3 votes.

Caitlin is a graduate of Dawson College and Concordia University and has been working in the personal finance industry for over eight years. She believes that education and knowledge are the two most important factors in the creation of healthy financial habits. She also believes that openly discussing money and credit, and the responsibilities that come with them can lead to better decisions and a greater sense of financial security. One of the main ways she’s built good financial habits is by budgeting and tracking her spending through the YNAB budgeting app. She also automates her savings so she never forgets to put aside a portion of her income into her TFSA. She believes investing and passive income is key to earning financial freedom. She also uses her Aeroplan TD credit card to collect Aeroplan points so that she can save money when she travels.

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