Reasons to Consider Installment Loans In Unexpected Financial Crisis

3 mn read

It can be highly stressful when a person does not have the required funds at important times. Also, if you are trying to explore numerous lending options, you must know that it can be a bit confusing. Several types of loans are available and it is not easy to decide which one is best for you and your financial needs. 

One of the easiest and best options is an installment loan. It is a short-term and fixed interest rate loan. The lump-sum amount will be given to you in one initial payment. You have to pay it back in small installments till the end date of the loan. 

Installment loans can be unsecured and secured by using any personal property such as a vehicle, bank account, etc. as collateral. The interest rates of this loan can vary and depends on factors like loan size, the credit history of the applicant, and the loan period.

When unexpected incidents happen in our lives, it is very devastating and heartbreaking. It is hard to think of options that can help you get such a large amount of money. Some of the unforeseen situations that increase your expenses are sudden house or car repairs, medical emergencies, overdue utility bills, and more. In all these conditions, installment loans can be of great help. 

When You Should Take Installment Loans? 

Here are the reasons why one should think of this loan option when life hits them financially as well as emotionally. 

  1. When you need funds quickly

Getting pre-qualification for an installment loan is relatively easy and receiving funds from it is fast. Some lenders such as Canadian Cash Solutions offer an installment loan to applicants having good or bad credit. People can get approval even on the same day of applying for a loan. An installment loan can be used for various reasons:

  • Tuition fees of children

  • Travel expenses

  • Emergency situation

  • Medical expenses

And even more!

  1. When you want to build your credit

Building credit can be a difficult task. You must have credit to get a good credit score. But getting approved for credit can be difficult if you do not already have a good score.

Well, you can take an installment loan and pay it back on time, it improves your credit score. It reflects lenders that you make your payments within a defined time and you’re a responsible borrower. 

Remember if your credit score is poor, you can face rejection and may have to pay higher interest rates.    

  1. Help you get out of revolving debt

If you have taken huge debts on multiple credit cards, it can be a big financial mess. The interest will go on collecting and it will take years for you to pay everything off. You can get your life back on track by consolidating all credit card debts into one. This process is known as debt consolidation. It is a smart way to stop continuing revolving debt over debt. 

By consolidating loans, the interest rate will be lower than credit cards. Your monthly installments will be easily manageable and you can easily pay them. Now you will have to remember only one installment rather than remembering multiple dates.   

Why Consider Installment Loans In A Financial Crunch?

There are several advantages of applying for an installment loan. Some of them are explained below:

  1. You’ll get access to money quickly: If you apply for a loan with major banks and traditional banks, it will take at least days or weeks to get approval. But if you apply with lenders such as Canadian Cash Solutions a, you can get approval on the same day of applying. 

  2. The process of applying for a loan is easy: The process comprises three simple steps. Apply for the loan online from the website. Submit basic documents and bring your vehicle to the store of the lending institution for inspection. After that, you can collect money from the lender.

  3. Manageable monthly payments: The monthly installments can be as low as you want. This is to ensure that you can manage without putting any effort to make such a small payment. The amount will be within budget and you will not have to worry about it. 

  4. No credit check: If you do not have a good credit score, you can secure it by using a valuable asset as collateral. You can use your vehicle, bank account, etc. as collateral and get rid of hard credit checks.

  5. Flexible terms: You have all the rights to choose the amount that you want to borrow and the lender from whom you want to get money. You can also decide the time period up to which you will decide to pay it back. 

  6. Reduce financial stress: By getting quick access to funds at crucial times can be life-saving. This can help a person remain stress-free and easily tackle a financial crisis.

 

Therefore, if you are struggling with financial problems, consider installment loans and tackle them without any stress.

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