Intro
Online installment loans offer a simplified online application process and fast funds to help cover emergency expenses in Barrie, Ontario. We don’t perform credit checks during the online application process. Apply online via LendProConnect.
While an attractive city in Central Ontario with a beautiful waterfront, Barrie has experienced a significant decline in affordability over a number of years, due to high inflation, insufficient housing stock, and low/stagnant wages. Therefore, many residents may need quick financial assistance to help close a gap in cashflow.
Who Can Benefit from Online Installment Loans?
Online installment loans may benefit subprime and near-prime borrowers who need help covering short-term expenses. Banks and credit unions may require a higher credit score in order to qualify for a loan and may even require in-person appointments. Meanwhile, online installment lenders may offer a simplified online application process and faster access to funds.
Factors that Lead to Lower Credit Scores
There are many reasons why someone might have a lower credit score. While the below factors may lead to lower credit scores, they may potentially be overcome with the right strategies.
- A high credit utilization ratio (above 30%).
- Elevated credit card balances.
- Missed payments or late payments.
- Mistakes on your credit report. Sign up for Credit Verify to catch errors on your credit report!
- Lacking a credit history. More common among young people and newcomers.
Typically, young adults and newcomers need more time to build an extensive and solid credit history. For various reasons that are not in the individual’s control, it may be difficult to establish a solid credit history.
Now that we’re reviewed the basics of online installment loans and credit scores, let’s consider the pros and cons of taking out an online installment loan to help pay for immediate expenses.
Pros of Online Installment Loans
- Quick access to funds.
- Simple and quick online application process.
- More flexible lending criteria.
- No need for in-person appointments.
Cons of Online Installment Loans
- Higher credit risk = higher interest rate and fees.
- Missed or late payments = additional fees.
5 Tips to Improve Your Credit Score
While many factors may be outside of your control, it’s important to look at available options. If at all possible, consider the strategies below to help you achieve a higher credit score:
- Register for Credit Verify. You will be able to monitor your credit health and automatically catch mistakes on your credit report.
- Pay off debt to lower your debt-to-income (DTI) ratio. A lower DTI may positively impact your credit score. Use either the snowball method or the avalanche method. The snowball method has you start with your smallest debt, while the avalanche method has you start with the highest-interest debt.
- Keep your credit utilization ratio low (below 30%). One strategy that may help is making micro credit card payments instead of paying off the balance in full at the end of each month. Making micro payments throughout the billing cycle can lower the credit card balance at any given time.
- Paying your bills on time may be the best strategy to improve your credit score long-term. One strategy that may help with that is automating your bills. Many service providers offer the option to automate your bill or set up pre-authorized debit. In this way, you may not even have to think twice. The key thing is ensuring that you have sufficient funds in your bank account on the payment due date.
- Build a longer credit history. Young adults and newcomers may be particularly vulnerable to having short or nonexistent credit histories, which may result in lower credit scores. For these individuals, it’s typically best to play the long game and endeavour to pay bills consistently over the long term. This may help build a more solid credit history.
The above strategies are just some of the tools in your toolkit. While some factors may be outside of your control, it’s important to see which strategies are available to you and what you can do to improve your situation.
5 Tips to Improve Your Financial Situation
In addition to the above, consider five strategies that may help you improve your financial situation. While there are no silver bullets or one-size-fits-all solutions, maybe some of these strategies will resonate with you.
- You may wish to consider debt consolidation. This may help simplify your monthly payments. You may also be able to obtain a lower overall interest rate.
- Retrain for a new, more lucrative career. This may require taking online courses or earning online certifications. In just months, you could be ready for a new, higher-paying job! You may want to consider fields such as data analytics, digital marketing, accounting, UX/UI design, IT support, cybersecurity, project management, graphic design, AI/machine learning, and/or sales & CRM.
- Review your budget. Consider brewing your own coffee and cooking at home. Prioritize fixed/necessary expenses over pleasure spending.
- Start building an emergency fund today. Even $10 set aside per month will make a difference in the long term. One in four Canadians cannot cover an unexpected $500 expense (source). Even saving $500 may help.
- Set clear financial goals. For example, maybe you want to earn a certain level of income or save for a major purchase. Once you set the goals, reverse-engineer the steps to achieve them.
The above tips may help you override the difficulties. However, these tips are not quick fixes, and the economic situation in Canada is certainly challenging. It will take long-term persistence to overcome challenges.
Final Thoughts
In this article, we reviewed the basics of online installment loans, who may benefit from them, the pros and cons of taking out an online installment loan, as well as tips to improve your credit score and your financial situation in Barrie. While there are no easy solutions, you may need quick funds to cover unexpected expenses. For that purpose, apply for a loan online via LendProConnect. We don’t check credit scores or credit reports during the simple and fast online application process. You may have funds deposited directly into your bank account in as little as 24 hours!
