Installment loans always sounded like a bit of daunting product to me. I’m not sure why because installment loans are actually the best kind of loans and are often just referred to as loans or conventional loans. Almost every type of loan or credit is an installment loan because you pay the loan back in installments. A car loan, a mortgage, a line of credit, and even paying off an appliance you bought at The Brick, are all installment loans. In truth, the only non-installment loan is a short term loan that you pay back the total principal borrowed plus any fees all at once. An example of such a loan is a payday loan.
Installment Loans are Probably Better for You Than Payday Loans
Payday loans are not installment loans and because of that, they can become a pricey undertaking if they are not used responsibly. The reason that payday loans exist is really to serve people in Canada who have a need for extra cash arise unexpectedly. They need money quickly and often have been turned away by the banks and other financial institutions because they have bad credit. Payday loans are very easy to qualify for simply with a piece of ID and some sort of active banking account. So when a Canadian absolutely needs money now and has a bad credit score, they can always get a payday loan. Cashco Financial offers fast and easy payday loans to anyone who needs one. However, we always recommend getting one of our Flex Loans instead and here’s why:
- Payday loans have their own set of issues that include a high cost of borrowing
- Due to payday loans being simple transactional loans, there is no progressive financial gains that can be achieved with payday loans
- Payday loans are really only a possible solution to a short-term cash shortage
- Installment loans, like Cashco Financial’s Flex Loans, can serve as the solution to large or more long-term financial issues.
How To Get an Installment Loan if You Have Bad Credit
Getting installment loans with bad credit can be very tricky, unfortunately. This is because installment loans are able to provide more money to a Canadian compared to a short-term payday loan. With more money being loaned out, financial lenders have to consider the relative risk in the borrower not paying back the large amount of money. That is really all a credit score is, it is your own propensity for paying back what you borrow. In fact, every time you make an on-time scheduled payment (whether it is on a car loan, a line of credit or any other installment loan) your credit score improves a little. Consequently, any time a scheduled payment is missed, paid late or not paid in full, your credit score worsens.
Canadians can still get installment loans even if they have bad credit, though; they just have to find the right place. If you cannot qualify for an installment loan at a bank, you can come to any Cashco Financial branch in Canada and get a Flex Loan. We also offer Flex Loans easily online so you can apply and get approved quickly right from the convenience of your own home. Our Flex Loans are installment loans for up to $5,000 with up to 3 years to repay in affordable installments (and that why they’re called installment loans). The best part is that with a Flex Loan, you can improve your credit score and turn bad credit into good credit within a few months of successful monthly, bi-weekly or weekly payments (your choice, our Flex Loans are flexible to fit your needs).
Get the money you need and started on the road to a good credit score today!
Prefer the personal touch? Head over to any one of our Cashco branches right now because a good credit score makes life a lot easier than a bad credit score: https://cashcofinancial.com/payday-loans-locations/