Why Should You Choose Installment Loans Instead of Payday Loans?



installment-loans-or-payday-loans

Personal loans have a lot of different types. Technically, you may consider auto loans, home loans, payday loans, credit cards and credit lines as personal loans. If you are a borrower, you need to be cautious about any loan or credit that you are applying for. Caution is vital when dealing with payday loans due to their short turn over periods. Installment loans on the other hand provide better protection to a consumer’s interests. Every province in Canada has strict laws that govern loans and lenders to but unfortunately, some lenders do not follow the law. If you are in need of a loan, then you should give Cashco Financial a try.

Flex Loans are the best long-term installment loan available to Canadians

Cashco Financial provides installment loans under its own branded name of Flex Loans. Flex loans are the best under the category of personal loans because they are flexible, simple, easy to apply for, and the funds are usually delivered to your registered bank account within a day. A soft credit check is performed in order to not harm a client’s credit score, and chances of approval are very high even for those with poor credit scores. You just have to provide your employment and residence proofs. All this can be done online without visiting a store, but the friendly Cashco staff seem to always be ready to help you at the store. This makes Flex Loans one of the most recommended online loans in Canada.

Cashco Financial operates out of 68 locations spread over 4 provinces in Canada. It is a private lender which is headquartered in Edmonton, Alberta. Apart from installment loans (flex loans) and payday loans, it also issues pre-settlement cash advances and auto loans.

3 Reasons why installment loans better than payday loans

  1. Installment loans have much lower rates of interest than payday loans: Would you believe that in most cases payday loans actually have APRs (annual percentage rate) higher than 400%? If you miss the payment deadline on your payday loan a few times, you can accumulate a massive debt. Installment loans have a lower rate of interest than payday loans and proper timely payment can actually help you improve your credit score.
  2. Payday loans can lead you to a debt trap: Payday loans often become cyclical in nature. If you allow the deadline for payment to lapse a few times or so, you would see the debt build in no time, the interest may actually exceed the actual amount borrowed. You can avoid this simply by paying your payday loans on time, but sometimes it is not always easy to do that because life happens. Installment loans are much more stable and predictable. You get enough time to pay off the principal and since the amount of each installment is usually quite small, they are easy to pay.   
  3. Chances of fraud are higher for payday loans: Many payday loan lenders don’t follow the rules. They don’t report all the details of transactions to credit reporting agencies. Many online lenders act as brokers and add to the already high borrowing cost. They also don’t reveal all the details in a transparent manner leading to confusion and failure to repay the loan. Chances are slimmer in case of installment loans because things are better documented and the government, as well as credit rating agencies and other authorities take stalk from time to time.

These are some of the reasons that installment loans are better than payday loans for all Canadians. What are your views on this. Do you prefer installment loans or payday loans? Would love to hear from you all 🙂

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About Mohammad Mustafa Ahmedzai

Mohammad is the Founder and Editor of RIW blog. He is a Professional Blogger, SEO Consultant & Web Developer. He blogs here occasionally but blogs at MyBloggerTricks full time.
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