Get an Installment Loan in British Columbia

Getting an installment loan involves borrowing a set amount of money that is paid back in installments, with interest added, over a specified loan term until the full amount is repaid. 

Installments can consist of weekly, biweekly, or monthly payments depending on the lender’s terms. Installment loans can be secured or unsecured, and interest rates for installment loans in BC can be fixed or variable. Interest rates range from 3-50%. 

For BC residents looking for money quickly to cover unexpected expenses or large purchases, installment loans are a good option. Installment loans in BC are easy to apply for online and many lenders a qualification process in just a few minutes. 

If you’re looking for the right lender, you can sign up for Borrowell and quickly compare loans available to you. Find loans that you’re likely to qualify for based on your free credit score. Once you’ve found the right product, you can complete an online loan application through the platform.

Installment loans can be used for many purposes, including: 

• Emergency home or car repairs 

• Medical bills for uninsured procedures

• Vacations

• Large purchases, such as appliances or vehicles

• Milestones events 

• Credit card debt consolidation

• Home renovation

• Overdue bills or taxes

• Investment opportunities

Installment loans are a good option for BC residents seeking to fund short term or long term expenses. The availability of flexible payment plans, terms, and loan amounts means that borrowers will likely find a loan offer that suits any financial need.

Borrowers seeking installment loans should compare the details of any loan offer and ensure that they will be able to pay back the loan according to the contract. You can sign up for Borrowell to quickly compare loan options and see the best rates available to you based on your credit score.

Qualifying for an installment loan generally requires that the applicant has the following:

• A Canadian bank account

• BC residency 

• Personal ID attesting that the applicant is at least 18 years of age

• Bank statements, employment deposit slips, or other documents demonstrating steady income

Your credit score also plays a role in determining whether you qualify for an installment loan. Each lender has different minimum credit score requirements for loan approval. The higher your score, the more likely you are to get approved for a loan. 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 personal loan options available. Sign up for Borrowell to see what loan options are available based on your credit score.

You can apply for an installment loan in BC either in-person or online. Many lenders only require applicants to fill out a simple online form and upload any relevant documents. With certain lenders, applications are processed and approved in just a few hours. Upon approval, funds can be transferred as early as a couple of days. 

Traditional loans can be difficult to get approved for if the applicant has bad credit. But getting approved for an installment loan from alternative or online lenders in BC is accessible even to those with weaker financial profiles. 

Not sure where to start? Sign up for Borrowell to quickly compare loans that you qualify for based on your credit score. Once you’ve found the right product, you can complete an online loan application through the platform.

When used and managed properly, an installment loan can actually help you improve your credit score. There are a number of ways that installment loans can benefit your credit score. Your credit score is made up of five main factors: 

• Payment history 

• Credit utilization

• Credit history 

• Credit mix 

• Credit inquiries 

An installment loan can lower your credit utilization and make your credit mix more varied. These can both boost your credit score. Unlike revolving credit card debt, installment loans don’t count towards credit utilization. Consolidating your credit card debt into one installment loan can lower your credit utilization and can help improve your credit health. 

If you manage an installment loan responsibly and make on-time payments towards your loan, you can improve your payment history, which will in turn improve your credit score. 

While there are numerous benefits to installment loans, making late payments towards your loan can have a negative impact on your credit score. This can make it more difficult to secure funds in the future.

Installment loan terms come in a variety of durations, with most lasting between 6 months to 5 years. Regardless of whether the borrower is seeking a long or short term loan, they will likely find a lender with the right term length for their needs.

Paying down an installment loan faster generally means lower interest rates and higher payments, while long term installment loans carry higher interest rates and lower payments.

Lenders in Canada are not permitted to collect more than 60% interest, with most interest rates on installment loans ranging from 3-50%. Interest rates are determined by many factors, including the lender’s qualification criteria, the applicant’s credit score and financial profile, the loan amount, and the loan term.

There are differences between secured and unsecured loans that you should be aware of. Secured loans require that the borrower put up an item of value as collateral. If the loan is not repaid, the collateral is seized by the lender. Since collateral provides insurance against failure to repay the loan, interest rates and fees are often lower than on unsecured loans. 

Unsecured loans do not require collateral. Because of this, lenders cover their risk by charging higher interest rates.

Installment loans are calculated based on a number of factors, including:

• Interest rate

• Amount of principal

• Loan term

• Fees

A formula integrating these factors calculates what the installment payment amounts will be and what the total cost of the loan is. This formula may be unique to each lender that you work with. 

With the growth of online and alternative lending, it has become easier for borrowers with varied financial profiles to access installment loans swiftly and without hassle. Qualifying for an installment loan in BC is fairly straightforward, so borrowers should take the time to compare different offers from multiple lenders before committing. Sign up for Borrowell to easily compare different offers that you qualify for based on your credit score.

Depending on the payment terms determined by the loan contract, borrowers will make weekly, biweekly, or monthly payments consisting of both a part of the principal and interest on the principal until the loan is paid off in full. 

Payments can be paid automatically from a bank account, or paid at each payment cycle. For borrowers with the resources to pay off an installment loan early, most lenders will not charge a penalty.