Get an Installment Loan in Toronto
Need an installment loan in Toronto? Borrowell can help! Use Borrowell to quickly compare loan options and find the best rates from trusted Canadian lenders. Check your credit score for free and see what loan options are available to you based on your credit profile.
The Best Way to Find an Installment Loan in Toronto
When you apply for an installment loan, lenders will qualify you based on your credit score. Over 170,000 Torontonians have used Borrowell to get their free credit score, find installment loan options, and compare interest rates that they qualify for. Sign up today to get your free credit score and easily apply for an installment loan with confidence.
Installment Loans Toronto: What You Should Know
Installment loans in Toronto offer borrowers a set amount of money, the principal, that is paid back in increments to their lender. The amount that is paid back in increments consists of a portion of the principal plus interest. These installment payments are made weekly, biweekly, or monthly until the full amount is paid back.
Installment loans range $500 and $35,000 with loan terms between 6 months and 5 years. Most installment loans in Toronto are unsecured.
Some of the popular uses for installment loans in Ontario include:
- Home renovation or repair
- Car purchase or repair
- Other large purchases
- Consolidating credit card debt
- Unpaid bills or back taxes
- Funding an investment opportunity
- Travel or vacations
Unexpected costs can arise at any moment. Installment loans provide the flexibility for any need and can be used for any purpose. No matter the reason, borrowers will likely find the loan amount, term, and repayment schedule to suit their needs.
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.
Getting a traditional personal loan can be daunting. With stringent requirements and long wait times, many borrowers struggle to secure a loan. With alternative and online lenders, getting an installment loan in Toronto is simple and quick.
Most lenders do require certain documents in order to process the application. It will help expedite the loan approval process to prepare the following in advance:
- Valid form of ID: For example, an Ontario 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
It’s easy to apply for an installment loan online in Toronto. It can take just a few hours to process and qualify the loan, and many borrowers receive the money in just a few days.
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.
There are a number of ways that installment loans can help improve credit scores.
Installment loans can help lower your credit utilization and contribute to a diverse credit mix. Reducing utilization below 30% and paying installment payments can improve an individual’s credit score over time.
If being used to consolidate debt, installment loans provide a lower interest, manageable solution to riskier debt.
Paying back an installment loan on time builds credit repayment history, which in turn improves the borrower’s credit score. Payment history makes up 30-35% of a credit score, so this impact is significant.
Of course, borrowers will only enjoy these benefits if installments are paid in full and on time. Missed or late payments can lower the borrower’s credit score and make it harder for them to secure a favourable loan in the future.
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
Even borrowers with bad credit will find an installment loan in Toronto. While there may be fewer loan offers and interest rates may be higher, there are plenty of lenders willing to work with individuals with bad credit, and some that offer no credit check loans.
A general guideline is that credit scores over 660 have the best chance of getting approved for loans. 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
To get an installment loan in Toronto, borrowers just need to compare offers from multiple lenders to find the best loan for their needs. The benefit of installment loans is that they are very flexible. There are short term installment loans that have loan terms as short as six months, and there are long term installment loans that carry loan terms of 5 years or even longer. Short term installment loans entail higher installment amounts, but interest rates are lower. Long term installment loans carry higher interest rates but lower installment amounts.
Secured loans are when the borrower puts up collateral as insurance on the loan. Collateral is an item of great value that can be repossessed if the borrower fails to meet repayment terms. Examples of secured loans are car loans or mortgages, since this property is seized in the event that the borrower doesn’t pay on time.
Most installment loans in Toronto are unsecured. This means that borrowers do not need to put up collateral in order to secure the loan. With unsecured loans, lenders hedge against the increased risk by charging higher interest rates.
Like all lenders in Canada, interest rates on loans are capped at 60% by law. Depending on the loan term, loan amount, lender requirements, and borrower’s financial profile, interest rates on installment loans in Toronto will range from 3-50%.
Installment loans in Toronto come in a variety of structures. Depending on the loan contract, installments are made weekly, biweekly, or monthly. These can be paid automatically via the borrower’s bank account, or can be paid manual at each payment cycle. The installment amounts will depend on the loan amount, loan term, interest rate, and loan fees.
Since most installment loans in Toronto have fixed interest rates, borrowers will pay the same amount at every cycle. If the borrower wishes to pay down the loan faster, most lenders will accept higher loan payments without penalty.
How Borrowell Can Help with Your Financial Goals
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Find an Installment Loan in Toronto 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!