Overview
Installment loans are small-dollar, unsecured loans repaid over several installments. Designed to provide quick funds, installment loans offer a simple and quick online application process. Here at OntarioCASH, we don’t check your credit score or credit report during our online application process.
The Cost-of-Living Crisis in Scarborough
Scarborough residents are facing a housing affordability crisis as well as a broader cost-of-living crisis. The average rent for a one-bedroom apartment in Scarborough exceeds $2,100 per month, while the average rent for a two-bedroom apartment in the area exceeds $2,500 (source: Rentals.ca). The living wage in Scarborough is estimated to have risen from $25.05 per hour in 2023 to $26.00 per hour in 2024. Both are much higher than the current provincial minimum wage of $17.20 per hour.
Who Are Installment Loans For?
Installment loans are designed as a short-term financial solution to help Scarborough residents cover urgent expenses and close gaps in cashflow. Subprime and near-prime borrowers – who have credit scores below 660 – may qualify for installment loans. While traditional financial institutions like banks and credit unions may be unwilling to lend to subprime and near-prime borrowers, alternative online lenders may have more relaxed lending criteria.
Typical lending requirements include the following criteria:
- You must be at least 18 years of age.
- You must be a Canadian citizen or permanent resident.
- You must have a stable source of income.
- You must have a valid Canadian bank account, which has been active for at least 90 days.
Here at OntarioCASH, we don’t perform credit checks during the simple online application process. This increases your chances of qualifying for an installment loan as a subprime or near-prime borrower.
Pros of Installment Loans
There are several potential advantages to installment loans over other borrowing options:
- Faster access to funds.
- Faster approval process.
- No credit check during the online application process.
- Longer repayment period than payday loans.
- Flexible lending criteria.
- The use of encryption technology to protect personal data.
- The ability to cover immediate expenses.
Cons of Installment Loans
However, it’s important to bear in mind the cost of the loan and make a plan to repay it responsibly:
- Higher credit risk may lead to higher interest rates and fees.
- Late or missed payments may lead to additional charges and fees.
While the cost-of-living crisis affects nearly everyone in Scarborough, there are ways potentially to improve your credit score and financial situation in the area.
Let’s start off with five smart tips to improve your credit score.
5 Tips to Increase Your Credit Score
- Pay your bills on time. This is the most important aspect of improving your credit score.
- Maintain a low credit utilization ratio (below 30%).
- Request a credit limit increase without increasing your spending.
- Sign up for Credit Verify to monitor your credit health.
- Pay off your debts. Use the avalanche method or the snowball method. The avalanche method involves paying off the debt with the highest interest rate first, whereas the snowball method involves paying off your debts from the smallest to the largest.
In addition, let’s explore five smart tips to improve your financial situation more generally.
5 Tips to Improve Your Finances
- Increase your income by retraining for a new career such as data science or UX design.
- Consider debt consolidation. It may allow you to simplify your monthly debt payments and reduce your overall interest rate.
- Use a budgeting system such as the envelope budgeting system. In this system, you put the money you’re going to spend in a given category in a specific envelope. Once the money in the envelope is gone, you cannot spend any more cash in that category that month.
- Build an emergency fund. Ideally, you would have at least three to six months’ worth of expenses saved. Life is unpredictable, and you want to be protected in case of emergencies such as a job loss or car repairs. Setting aside even a small amount of money regularly will make a big difference in the long run.
- Automate your bill payments to avoid missing payment due dates.
The Bottom Line
Need quick funds? Apply for an installment loan online via OntarioCASH. While the cost-of-living situation in Scarborough has never been tougher, there is financial support available to help you cover urgent expenses.
