Get an Installment Loan with Borrowell
Use Borrowell to quickly compare the best installment loans in Canada and see your likelihood of approval in minutes! Plus, access free online tools to monitor your credit score every week and achieve your financial goals. Join over 1.5 million Canadians who have signed up for Borrowell.
How to Get an Installment Loan in Canada
Borrowell works with over 50 Candian financial partners to find installment loans that match your credit profile. Sign up for Borrowell to get your free credit score and compare car loans, personal loans, and other installment loan offers based on your profile. Keep track of your credit health on a weekly basis and get personalized tips to help you build your score and qualify for different offers in the future.
Installment Loans Canada: What You Should Know
Installment loans give borrowers a set sum of money, the principal, that is repaid, with interest, in installments over a set period of time. Car loans and mortgages are both types of installment loans, but consumers can also get an installment loan for other purposes.
How much a borrower will need to pay back in each installment is determined by the loan amount, term length, and interest rate. Installment loans were traditionally only available from brick and mortar banks, with stringent requirements and long processing times. The evolution of online lending and platforms like Borrowell gives borrowers a faster, easier way to access money.
Installment loan amounts typically range between $500 and $10,000 but can go as high as $35,000 or more. Installment loans can carry a variety of repayment terms, whether short term or medium term, and payments can be made weekly, bi weekly, or monthly depending on the contract. Terms are generally between 6 months and 5 years.
Installment loans are known as unsecured loans, and there are differences between secured and unsecured loans. Secured loans require the borrower to put up collateral as protection against default. Installment loans are unsecured, so there is no requirement for applicants to offer collateral.
Installment loans can be used for almost anything, including:
- Car purchases or repairs
- Paying off credit card debt
- Home renovations or repairs
- Paying overdue bills or taxes
- Emergency expenses
- Medical bills not covered by insurance
- Travel and vacation
- Large purchases
- Milestones events such as weddings
- Debt consolidation
When it comes to what the money can be used for, installment loans are very flexible. There are a variety of amounts, interest rates, and term lengths available from lenders, so most borrowers will find an installment loan that suits their unique needs.
No matter what the loan is used for, it’s important to know the details of any loan. Ensure that your payments are made on time to avoid costly penalties, fees, and impacts to your credit health.
Online installment loan applications are making it easy and fast for Canadians to secure money for any large expenses. While most applicants (including borrowers with bad credit) will find a loan that suits their needs, lenders do have certain requirements in order to process an installment loan application.
Most lenders have the same basic requirements to qualify a loan, including proof of identity, income, and a valid Canadian bank account. Some lenders do perform a credit check, but it is possible to find a no credit check installment loan. Before applying, borrowers should collect the following information:
- Proof of income: To qualify for a loan, borrowers must show that they have steady and consistent income. Documents to provide may include paycheck stubs, bank statements, or tax slips.
- Proof of age: A valid government issued ID, for example a driver’s license or passport, is accepted as proof of age. The minimum age required to receive an installment loan in Canada is 18 in most provinces.
- Proof of citizenship/residency: Loans are often only given to Candian citizens or permanent residents, so applicants will need to supply documents attesting to this status.
- Proof of bank account: Online installment loan providers will need a bank account to deposit money and to collect payments. Applicants must provide account details when applying for an installment loan.
With online lenders and platforms like Borrowell, it’s easy to get approved for an online installment loan in Canada. There is no need to wait in lines or fill out paperwork — borrowers just fill in the simple online application, scan documents, and have the money deposited in their bank accounts often within a few days
Plus, when applying for an installment loan online, borrowers can use a free app like Borrowell to quickly compare loans between multiple lenders. This enhanced transparency ensures that consumers are getting the best installment loans for their individual needs.
Online lenders have user-friendly forms and support so that applicants can get the money they need quickly and hassle-free. Qualification and approval can generally happen within hours of applying. If you’re approved for a loan, money can be transferred to your bank account within a few business days.
It can help streamline the application process to ensure that all documents are prepared ahead of time, getting money into a borrower’s account quicker.
Traditional borrowing from a financial institution required borrowers to apply in person and provide numerous documents demonstrating financial suitability. To compare loan offers, the borrower would have to visit several banks or financial institutions, making the process slow and burdensome. Furthermore, once submitted, the lender could always deny the loan or offer high interest rates to compensate for a less than stellar borrower profile.
Borrowell is an online platform that provides Canadians seamless access to installment loans from the country’s most trusted lenders. Loan amounts typically go up to $35,000 and carry a variety of term lengths, interest rates, and other variables. You can qualify for low interest loans with a high credit score, which you can get for free by signing up for Borrowell. If you have a bad or low credit score, there may still be loan options available to you, which you can find on the Borrowell platform.
Beyond lending products, Borrowell’s free credit monitoring lets users view their credit score instantly, letting loan applicants better understand which loans they are likely to qualify for at the best available rates. Credit score monitoring can also foster improved financial responsibility and health, giving borrowers better financing options in the future.
Borrowell displays interest rates and any associated fees clearly so borrowers know what they are getting.
Once a user is registered with Borrowell and has accessed their free credit score, it is easy to start shopping for an installment loan. Users can compare financial products from over 50 lending partners and get personalized recommendations. Borrowell also hosts a range of educational assets empowering Canadians to better understand their credit health and improve it over time.
Borrowell members benefit from a variety of services to get a loan, build credit, and learn more about attaining long term financial health goals.
Installment loans deliver a flexible, accessible financing solution for borrowers even if their credit score is low. Of course, like most loans, installment loans can affect the borrower’s credit score in a number of ways.
When repayments are made in full and on time, this can improve credit health over time. Payment history makes up 30-35% of an individual’s credit score, so making payments on time is vital to keeping your credit score strong.
Another benefit to credit health is in diversifying the borrower’s loan portfolio. Since installment loans aren’t considered credit debt, these loans don’t contribute to higher credit utilization and contribute to a better credit mix. Blending installment debt and revolving credit debt will tend to improve credit scores.
One of the greatest potential impacts of installment loans on credit score is from using an installment loan to consolidate debt and make it more manageable. Combining a number of smaller, higher interest loans into one larger, lower interest loan makes it easier to pay back every month, and lowers the borrower’s credit utilization. Reducing utilization rates can significantly increase credit scores as long as utilization rates stay below 30% and installment payments are made on time.
Some lenders perform a hard credit check when qualifying an installment loan. This reduces the applicant’s credit score slightly in the short term. However, it is possible to find no credit check installment loans if you’re worried you have a bad credit score. These types of installment loans typically have much higher interest rates, so they aren’t as favourable or attractive.
Check Your Credit Score Before Applying
Lenders look at your credit score
Your credit score is one of the main criteria for qualifying for installment loans, whether you’re applying for a car loan, a mortgage, or other types of installment loans. To make the application process easier, you should know what your actual credit score is before applying for a loan. With Borrowell, you can quickly check your credit score for free to speed up the process.
Applying for loans impacts your credit score
When lenders check your credit score, it is recorded on your credit report as a “hard inquiry.” Hard credit inquiries temporarily lower your credit score, and applying for many loans at once results in multiple hits to your credit score. To protect your credit score, you should only apply for loans that you’re confident you’ll qualify for.
Borrowell shows you loans you qualify for
To minimize impacts to your credit score, you want to make sure you apply for a loan that you'll likely get approved for. Borrowell helps protect your credit score by showing you your likelihood of approval for recommended loan offers, based on your credit score.
Borrowell's Quick & Easy Loan Process
Sign Up & Get Your Score For Free
When you sign up to Borrowell, you’ll get your free Equifax credit score free in just three minutes. Checking your score won't impact it, and you can see which loans you will be eligible for.
Check Rates & Choose Your Offer
Borrowell automatically matches your credit profile with the best loan products available based on your credit score. Select your offer and complete the online application.
Get Your Loan
Once your personal loan is approved by a Borrowell loan partner, you can usually access your funds in just a few days.
Is Signing Up for Borrowell Free?
Yes, it's really free. Borrowell provides you with your Equifax credit score, free of charge. Based on your credit score, we provide you recommendations on the best loans, credit cards, and financial products that you are likely to qualify for. Knowing your credit score speeds up the loan application process and helps you get your money as quickly as possible.
Still Have Questions?
Get More Answers
Installment loans can have short term to medium term durations,with most loans lasting between 6 months to 5 years. Long term installment loans longer than 5 years may also be possible to secure, but these are less common.
Short term installment loans generally have better interest rates, making these ideal for borrowers who need to get a sum of money quickly but expect to repay it within the year. For a longer term installment loan, interest rates may be somewhat higher but repayments will be lower. Medium term installment loans are good for borrowers who do not have the cash flow to pay back the loan in several repayments but prefer to spread it over a longer term.
Online installment loans are unsecured. This means that borrowers will not have to put up any collateral, even in cases of bad credit or no credit check installment loans.
Loan installments can have a range of repayment schedules, for example weekly, biweekly, or monthly, so borrowers have greater flexibility in how they pay back an installment loan.
Even if an applicant has bad credit, it is still possible to find a lender to work with. Bad credit borrowers in Canada can secure installment loans online, however there may be fewer products to choose from. Borrowers with bad credit can also expect to pay higher interest rates than a borrower with good credit.
When a lender performs a hard credit check, this can impact a borrower’s credit score. There are a number of lenders in Canada that offer installment loans with no credit check. The terms and interest rates on no credit installment loans vary widely, making it vital to compare lenders prior to accepting an installment loan offer in order to find the best conditions.
If you are worried that you have a bad credit score, these types of installment loans might be an option to consider. That said, These types of installment loans typically have higher and less favourable interest rates.
Installment loan terms range from short term to medium term durations of 6 months to 5 years. For long term loans or for amounts over $35,000, other financial products may be preferable. Installment loans are ideal for short term or medium term expenses that can be repaid relatively quickly, as opposed to a long term mortgage loan that is repaid often over decades.
Failing to meet the repayment schedule for an installment loan can negatively impact the borrower’s credit score and make it less likely that they will qualify for additional loans in the future. For secured loans, defaulting on payments could result in having the asset seized to cover the loan cost.
How Borrowell Can Help with Your Financial Goals
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Find an Installment Loan in Canada with Borrowell
Ready to find the right installment loan for you? Sign up for Borrowell to get your free credit score, receive personalized loan recommendations based on your score, and quickly apply for a loan today!