Get an Installment Loan in Calgary

In Calgary, you can use installment loans for quite a few things. Some types of installment loans are used for specific purchases, like a car loan when purchasing a new vehicle, or a mortgage when purchasing a house. In general installment loans can be used for many things, including:  

• Medical expenses

• Car repairs 

• Unexpected expenses 

• Large purchases

• Trips or vacations

• Home renovations

• University or tuition costs

Although payday loans are technically a specific type of installment loan, the defining difference between the two is the payment term. Payday loans have a much shorter payment term than installment loans. They also generally don’t require a credit check, are lent for smaller amounts of money, and have much higher interest rates. If not managed responsibly, a payday loan can turn into bad debt because of sky-high interest rates and the likelihood they will increase rather than alleviate your overall debt.

There are many financial institutions in Calgary you can contact to apply for an installment loan. These range from traditional brick-and-mortar lenders, who may have longer processing times and stricter qualification criteria, to online lenders, who can process digital applications and may have more lenient qualification criteria.

Before applying for a loan, the best thing to do is compare lenders online. With Borrowell, you can quickly compare lenders and their loan offers, including their interest rates and term lengths. You’ll also see your likelihood to qualify for their products based on your credit score. This will help you find the best lender that matches your credit profile and ensures that you get an installment loan that you can afford.

To qualify for an installment loan, you must meet the following criteria:

• Be at least 18 years old

• Be a Canadian citizen or a permanent resident with a valid Canadian address

• Have proof of income

• Have a working bank account

• Be able to provide a credit score 

Not sure what your credit score is? You can get your free credit score from Borrowell and see what installment loans you can qualify for based on your credit profile. Sign up for Borrowell today to get qualified for an installment loan.

Just like anywhere else in Alberta, you can apply for installment loans in Calgary either in person or online. Each lender has a different loan application process, but most lenders in Calgary will ask for the following personal information:

• Valid form of ID: For example, an Alberta driver’s license

• Proof of residency: For example, utility bills or a tenancy agreement

• Proof of employment and income: For example, bank deposit slips, bank statements, or a letter of employment

• Social Insurance Number

With many lenders, you can start your loan application quickly by completing an online form.

Not sure where you should apply? Use Borrowell to quickly compare loans, rates, and lenders that you are likely to qualify for based on your credit profile.

As long as you are making on-time payments towards your installment loan, they can definitely help improve your credit score! Your credit score is made up of five main factors: 

• Payment history 

• Credit utilization 

• Credit history 

• Credit mix 

• Credit inquiries 

Your payment history and credit history combined account for 50% of your score. 

If you manage your installment loan properly, you’ll build up your payment and credit histories, which will improve your credit score. This only happens, though, if you remember to make your payments on-time. Late payments can have a big impact on your credit score — even up to a 150 point decrease. 

You should also make sure that your lender is reporting your loan payments to a major credit bureau (either Equifax or TransUnion) to ensure that there is an official record of your loan on your credit file.

Receiving an installment loan may also help reduce your credit utilization and diversify the types of credit you have, which are factors that also help improve your credit score.

With an installment loan, you can typically receive anywhere from $500 to $35,000. The amount you can qualify for depends on many factors, including the lender you work with, your financial history, and your credit score.

The typical interest rates for installment loans in Calgary range from 5%-30%. But, it’s important to keep in mind that these rates vary by lender and may depend on your credit score.

It is possible to get an installment loan even if you have bad credit. Your credit health will determine the terms of your loan, including the interest rate and term length. For instance, if you have bad credit, you’ll likely have stricter payment terms because you could appear as a more “risky” client to lenders.

Luckily, lenders may also look at things such as your employment history and monthly income to help determine your loan eligibility.

A general guideline is that credit scores over 660 have the best chance of getting approved. If your credit score is below 660, there are still installment loan options available. Sign up for Borrowell to see what loan options are available based on your credit score.

Installment loans in Calgary can be both secured or unsecured. The specifics of your loan terms and the lender you get your loan from will determine this. Keep in mind that interest rates on unsecured loans are higher than the interest rates on secured loans.

The main difference between secured and unsecured loans in Calgary is that a secured loan involves guaranteed repayment through the use of collateral. With a secured loan, you would use an asset like a home to guarantee that you will repay the loan. That means that if you default on your debt obligations, your home could be seized by the loan company. Because of this collateral, secured loans tend to be available in bigger amounts and feature much lower interest rates than unsecured loans.

With an unsecured loan, you don’t guarantee repayment, so you don’t have to worry about losing your home if you default. However, with an unsecured loan, you will have to pay higher interest rates throughout the entire course of your loan term.