Installment Loans Canada No Credit Check

What is an Installment Loan? How is it Different from a Payday Loan?

You may be familiar with the concept of payday loans. Installment loans are similar. Both don’t require collateral or a credit check. However, there are several advantages to using installment loans over a payday loan. Primarily, the difference between the two are threefold:

• An installment loan has a more flexible repayment schedule
• An installment loan has lower costs
• Installment loans allow you to borrow more money

Let’s discuss those in greater detail.

Greater Flexibility

First, a payday loan – just like an installment loan, is a short-term solution to your financial needs. However, both loans do not have the same short-term repayment schedule. The terms of any payday loan agreement usually require you to pay the entire amount back in one lump sum payment. Not only that, the entire sum often needs to be repaid on your very next paycheck.

Installment loans are different, in that you get to pay the sum back in – you guessed it – loan installments. This type of loan comes with a weekly, bi-weekly, or monthly payment schedule, hence the name: installment loans. In that sense, installment loans are more flexible than other no credit check loans. In addition, the repayment period for installment loans is also much longer, allowing you a five-year payback period instead of one month. As an added bonus, should you be unable to make an installment payment for your loans, you can use collateral to temporarily offset the missing amount.

Lower Costs

Second, installment loans have lower costs than payday loans. The costs are significantly lower based on the terms of repayment. Payday loans are designed to be paid off in full, or they are considered “unpaid.” When a borrower signs a loan agreement with a payday loan company and doesn’t repay the entire amount quickly in one lump sum, you are penalized. If you are not able to make the entire payment within a very short period of time – usually two weeks – you end up getting hit with huge ABRs (annualized borrowing rates) on those loans.

In some cases, these rates are usurious, with companies charging between 400% and 500% interest in the amount, however small. When borrowers cannot pay back the payday loan in full, they are forced to roll the unpaid amount into a new payday loan, and this often creates dangerous loan cycles that trap people into debt. In the end, an unpaid payday loan won’t just hurt your credit score, it will force you to pay back much more than the original amount. Payday loans are dangerous financial products, and they are that way by design.

Different Ways to Prove Creditworthiness

What can be used as an alternative solution to lenders to approve a loan without a credit check? A lender will require some other method to find out if you are credit worthy if they are not pulling a credit check for your loan. Working with lenders who are able to give loans without a credit check will be able to, but you will be responsible for supplying them with one of the subsequent qualifications:

Active Bank Statements:

You will find that the lenders that approve loans with no credit check in Canada will need to see that you have an active bank account by having copies of your recent bank statements proving that there is a monthly flow of income and outcome of funds. These documents are needed to prove to the lender that you will be able to repay the loan and have access to sufficient money. A lender may not approve you for a loan without checking your credit if you already have significant debt that is owed. A few of the acceptable ways of providing your bank statements in order to be approved for a no credit check loan are:

• Online Instant Bank Statements: There are many different instant banks available. Depending upon which online program your lender of choice uses, you will be required to sign into your online account using their program that will collect the necessary data in order to establish your portfolio. These online programs allow for the lender to only have access to the required information, and none of your private account details.
• Online Bank Statements: All financial institutions that offer online services provide the account user with online bank statements that they are able to download. Lenders may require copies of these online bank statements to determine your eligibility for a no credit check loan.

In most cases, you can fax these documents directly to the lender as well.

Proof of Income Requirements

Another way that you can prove that you are a good candidate to your no credit check lender is through proof of continual income. One thing that lenders of loans without credit check are looking are candidates that will be able to repay the loan in a timely matter, while not causing further financial stress upon the individual. Lenders want to make sure they are providing a positive experience for their clientele, while not creating more money issues for them.

Security for Repayment

There is the possibility of using collateral as security for the repayment of your loan without a credit check in Canada, in case you have a fear of your credit score or bank statements affecting your loan approval. If you are able to provide collateral, a credit verification will be less likely to be required for your secure loan, since it now plays a less significant part. Having a credit check is less significant in this case because often it is a much higher value than the loan, and thus financially secures the applicant. Having a security for repayment is a smart way of being approved for a no credit check loan of $5000 or more. Secured loans are a positive solution for people who are wanting to avoid a credit verification and you will have higher chances of being approved for more money.

Using A Guarantor

For those that are not receiving steady income or want to avoid a credit verification, there is always the option of using a guarantor which can help get your no credit check loan approved. The use of a co-signer can be a huge sway to get approval of your lender. A guarantor is someone that has a steady and significant income with a positive credit score. In addition, a guarantor will be required to sign a contract that declares them financially responsible for your loan repayments, in the case of you not being able to pay them back and should be aware of this detail before they sign the contract for the loan without a credit check.

In this instance, once the contract is approved the borrower should have no problem getting approval for the online loans with no credit check with a lower interest rate, and of course, no credit check. There will however be a credit check for the guarantor to validate their finances.

Why Use Installment Loans?

Installment loans offer you the chance to handle sudden expenses.

These can be any sort of expenses, such as car repairs, utility bills, home renovations, or money for medical care. But you can use no credit check installment loans for much more than emergency repairs. You can fund a much needed vacation, help pay for a wedding, put down money to pay for continuing education, or even invest in a start-up business.

Do you need money to travel somewhere for a funeral? Would you like to lend money to a family member in desperate need? If your bad credit (or poor credit score) have put you at a disadvantage with banks and other traditional lending institutions,  Lend for All might be the solution. From British Columbia to Newfoundland, Lend for All is Canada’s #1 solution for short term loans.

Lenders of No Credit Check Loans

A credit check is always required if you apply for a loan from a traditional bank or financial institution. This is done by banks, so that they can decide if you are a good candidate for the loan. An individual may not want to risk being turned down for a loan if they are aware that their credit isn’t the best. When a person wants a loan with no credit check and need money quickly with a short term, the following are types of lenders that meet this criteria:

• Alternative Lenders
Are willing to work with those that have not been approved by traditional financial institutions, and are usually available online

• Private Lenders
Have more lenient rules than banks in order to approve loans

• Niche-Focused Lenders
Specialized for specific people or circumstances
(such as private mortgages, car title loans, etc.)

 

How is Lend For All Different? 

Lend for All uses of Canada’s first Artificial Intelligence lending platform.

We use AI to help us process loans faster, which in turn helps us keep our costs down so we can pass the saving on to you. Having Lend for All’s AI on your side will give you a greater chance of approval in just six fast and easy steps. Our loan application is so simple that anyone can do it!

When submitting your loan application to Lend for All:

• You get the best customer service, and access to Canada’s most reputable lenders.
• Your financial security is better protected , since installment loans allow you to make small payments over a longer period, reducing  the stress on your day-to-day financial situation.
• You save money, and no matter what, your Annual Percentage Rate (APR) will remain fixed.
• Installment loans in Canada can help you build (or rebuild) your credit. And there is an added bonus: By improving your credit score, your chances of approval for other types of loans will skyrocket!

Call Today!

If you or someone you know needs no credit check loans to make their money problems disappear, contact our friendly staff online or get in touch by phone today by calling 1-800-532-4505. It’s a toll-free call! 

We’ll be happy to guide you through our loan application process if need be, and help you get your hands on one of our short term installment loans before you know it!