How to Manage Your Installment Loan

KEY TAKEAWAYS

✔ Pay on time and don’t miss payments

✔ Talk to your lender if you have any difficulties

✔ Educate and protect yourself

An installment loan is a loan for a specific amount that you get from a lender such as easyfinancial that you agree to pay back, with interest, over time with scheduled payments. There are many types of installments loans – such as mortgages and personal loans.  

If you have just gotten an installment loan yourself – either a short-term one that helps you build credit, or a longer-term loan that gives you manageable payments over time – you want to make sure that you manage that loan well so that you can protect or rebuild your credit score and get better rates in the future. We can offer you some advice.

Tip #1: Always pay your installment loan on time. 

This is very important because your good payment history helps build your credit score. Late payments can negatively affect your score.

Tip #2: Never defer a payment on your installment loan.

You negotiated a loan repayment schedule that you expected to be able to handle, but sometimes things happen and you might be hard-pressed to make your payment. If you think you might not be able to make a payment, talk to your lender before. They might be able to help you with such things as deferred payments or a different payment schedule.

Tip #3: Try to pay more than the minimum.

If you have terms that allow you to make larger payments or more frequent ones, you can pay your loan off faster and save on interest charges.

Tip #4: Educate yourself about managing debt.

Understanding money and debt management can help you make better financial decisions. There are many articles at our goeasy academy that can teach you about debt, saving, budgeting and improving your credit score.

Tip #5: Protect yourself.

Try out our credit monitoring service, which helps you constantly track your credit score with unlimited credit checks, offers debt analysis and fraud protection. Loan Protection Plan coverage is there to keep you on track if the unexpected happens, such as accident or sickness, and involuntary unemployment.  

Debt is a part of life. It can help you get the things you need such as a car, or education or home. But you want to make sure you don’t take on more debt than you can handle. If you do find it hard to manage your debt, don’t assume that you have to go to the extreme of bankruptcy or a consumer proposal – talk to your lender first!