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An installment loan can be a godsend for actors in between jobs. Aside from doing odd jobs like waitstaff in restaurants, this can be something to fall back on. Whether you need cash for an emergency, medical expenses, or bills that require immediate payment, you can depend on this type of loan to get you through a tough spot.
However, there are different types of installment loans you can take out depending on the purpose and circumstances. So before you jump in and avail of one, you should know the basics.
What is an installment loan?
The Financial Consumer Agency of Canada or FCA defines installment loans, sometimes referred to as personal loans, as those extended to borrowers and paid in regular installments. These loans may come with variable or fixed interest rates.
Unlike a revolving loan, wherein credit is renewed as the borrower pays off their debt, an installment loan provides a lump sum to the borrower. Once the payment is made in full, the account will be closed.
Types of Installment Loans
Installment loans may be secured or unsecured depending on their purpose. Secured loans, such as automobile loans or home mortgages, require an asset that the lender will take from the borrower in case of default. Meanwhile, unsecured loans do not need collateral, but the lender may sue the borrower for non-payment.
Below are the different types of installment loans you can avail of:
- Auto-loan: This is a secured installment loan wherein the collateral used is the vehicle taken out by the borrower.
- Home mortgage: This is a loan offered to the borrower to purchase a house or a property. This is another type of secured loan wherein the title is put under the lender’s ownership until the loan is paid in full.
- Personal loan: This type of unsecured loan is where the borrower receives an amount of cash for different purposes, such as fixing the house or paying off bills. A payday loan is a personal loan that can provide fast and easy money for any need you may have as an actor. This could either be new headshots or even to pay for rent while you are still looking for gigs.
- Student loan: A type of loan offered to students to help them cover post-secondary school costs such as books, living expenses, and of course, tuition fees. These loans are usually borrowed from a private lender or a government institution. If you are still studying to become an actor and need some money to tide you over, this is the perfect loan for you.
Applying for an Online Installment Loan
Regardless of whether you’re getting new headshots or paying for drama classes, here are the steps on how to apply for an online installment loan:
Fill out a short-term loan application online.
On top of the primary loan info, you also need to put in the purpose of your loan. You will also need to state the amount you wish to borrow and how you would like to receive the funds.
Wait out the loan application process.
Once you have submitted your form, the lender will let you know if you’ve been pre-approved.
The lender will email or call you if any additional information is required.
Know the terms and conditions. Ask questions.
You must know the exact inclusions of your loan’s terms and conditions. Lenders should disclose all the information, including the interest rate, fees and penalties if you default on your payment.
According to the FCA, lenders covered by federal regulations such as banks need to disclose all information to the borrower when taking out a loan. However, other lenders under territorial regulations, such as alternative lenders, may not be required. You can check out your area’s Provincial Consumer Protection Office to know more about their respective lending rules and regulations.
Receive your funds.
Once you get your loan’s approval and agree with the terms and conditions stated on the contract, your money should be on its way to your account.
Installment Loans Can Answer An Actor’s Needs
Overall, payday loans can be pretty handy if you need cash in the shortest time possible. However, before signing up for a loan, make sure you read and understand all the terms and conditions stated in the loan agreement.
Ask the lender if there’s anything you don’t understand to avoid issues while paying for the loan. As an actor, you may not know when your next job may come knocking, so you need to be smart about these things.