How Do Poor Credit Installment Loans Work?
Poor credit installment loans are a short-term loan option that allows you to borrow money even if you have bad credit. A direct lender usually offers this type of loan and can be paid back with easy monthly payments.
Most poor credit installment loans can be applied online, which makes the process quick and convenient. A direct lender can approve your loan within minutes, and you can get your money as soon as the next business day.
Instead of looking at your credit score, direct lending companies check your financial situation and your ability to repay the loan. This means that you need to have a regular source of income or a steady job in order to qualify for an installment loan.
Poor credit installment loans are not as expensive as other types of loans, such as payday loans, but they also do come with high-interest rates. It is due to the fact that these loans are short-term and unsecured, so the lender is more likely to lose money if you default on the loan.
Direct Lenders That Offer Poor Credit Installment Loans
Here are some of the most popular direct lenders that offer poor credit installment loans in Canada:
Cash 4 You
Cash 4 You is a licensed lender that offers poor credit installment loans ranging from $1,000 to $15,000 with a repayment term of 12 months to 60 months. In addition, they charge an annual interest rate of 46.93%.
Lending Mate Canada
Lending Mate Canada offers poor credit installment loans to Ontario and British Columbia residents. Their installment loans range from $2,000 to $10,000 with an interest rate of 43% per annum. Their repayment terms are between 12 months and 60 months.
Magical Credit
Magical credit is another company that specializes in poor credit installment loans. They allow borrowers to get a loan from $1,500 up to $20,000 with an annual interest rate of 19.99% to 46.8%. Their repayment term is between 12 months to 60 months.
Urgent Money
Urgent Money is another lending company that offers short-term installment loans to Canadians with poor credit. The loanable amount is from $500 to $1,500 with a repayment term of 90 days to 120 days. They charge $18 per $100 borrowed.
Frequently asked questions
What are the basic requirements to qualify for a poor credit installment loan?
Does your income have to be over a certain amount to qualify?
How do you know if you can trust a direct lender that offers a poor credit installment loan?
What if you get rejected when applying for a poor credit installment loan?
Conclusion
It can be hard to get approved for a traditional bank loan when you have a poor credit score. The good news is a poor credit installment loan can be an excellent option for you. This kind of loan is more flexible than other kinds of loans, and you can choose the amount and repayment term that is suitable for your financial situation.