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Bad credit loans in Alberta
Find out where you can apply and get fast approval for bad credit loans in Alberta.
If you’re having trouble getting approved for a personal loan from a traditional lender, there are other options available. Several alternative lenders offer bad credit loans in Alberta, making it easy to gain fast access to the funds you need.
But bad credit loans come with high interest rates and fees, so it’s important to compare a range of lenders and loans before deciding which one is right for you.
Compare bad credit personal loans in Alberta
What are bad credit personal loans in Alberta?
The key features of bad credit loans in Alberta include the following:
- Secured and unsecured loans available. Most bad credit personal loans are unsecured. But if you’re willing to secure your loan with collateral, for example your house or car, you’ll increase your chances of getting approved for a loan and also accessing lower rates. Of course, you could lose the asset you put up as collateral if you end up defaulting on the loan.
- Loan amounts. As a general guide, you can borrow amounts ranging from $500 to $15,000 on a bad credit personal loan. It may be possible to borrow larger amounts with a secured loan.
- Loan terms. You’ll typically be able to repay your loan over periods ranging from 6 - 60 months. Choosing a longer loan term will mean lower monthly repayments, but you’ll end up paying more interest in the long run.
- High interest rates. Bad credit loans come with interest rates as high as 6 - 60 months, so it’s important to compare a range of loans and consider your financial situation carefully before you apply.
Do I qualify for bad credit personal loans in Alberta?
Eligibility requirements vary between lenders, but you will generally need to meet the following criteria to qualify for a bad credit loan in Alberta:
- Be at least 18 years old (you can prove your ID by providing your driver’s licence or passport).
- Be a Canadian citizen or resident.
- Provide proof of employment and regular income.
- Have an active bank account.
- Meet the minimum credit score.
There may also be other eligibility requirements, but these vary depending on the type of loan you’re applying for. You may need to meet minimum credit score requirements if you’re applying for an unsecured loan, while you’ll need to provide proof of collateral (such as your car or your home) when applying for a secured loan.
What to watch out for with bad credit personal loans
There are a few risks and traps you should be aware of before you take out a bad credit loan in Alberta:
- Expensive. Lenders view borrowers with bad credit as being at a higher risk of defaulting on their loan. As a result, bad credit loans come with higher interest rates (up to 46.96%) than traditional personal loans and will cost more to repay.
- Fees and charges. Make sure you’re aware of any fees that apply to your loan. These may include origination fees, late payment penalties and fees for repaying the loan early. Remember to check any loan’s annual percentage rate (APR) to get a clear picture of how much it will cost.
- Predatory lenders. Unfortunately, you’ll need to be wary of personal loan scams when searching for a bad credit loan, so it’s important to research your lender carefully. Make sure the lender is registered in Alberta, and review all loan documents carefully before you sign on the dotted line.
How to get a personal loan with bad credit
You can apply for bad credit loans in Alberta by completing the following steps:
- Check your credit score. The first thing you should do is order a copy of your credit report from Equifax or TransUnion. This will give you an idea of how your application will appear to lenders, plus you’ll also be able to dispute any incorrect information in your report. There are also some free online tools to give you a rough idea of your credit score.
- Compare lenders. Next, research lenders that offer bad credit loans. Research each lender to make sure they’re reputable, then check the eligibility criteria you’ll need to satisfy to qualify for a loan.
- Compare loans. Now it’s time to compare the features of bad credit personal loans. Be sure to look at the APR, how much you can borrow, how long you have to repay the money and how often you’ll have to make repayments.
- Get pre-approved. Once you submit a loan application, the lender might do a surface-level check of your finances and give you personal loan pre-approval. This gives you an idea of the interest rate and loan terms you may qualify for, but be aware that nothing is locked in yet. Fairstone and Mogo are two lenders that allow you to get a loan quote without it affecting your credit score; however, please note that some lenders will perform a hard credit check straight away, which can impact your credit score.
- Complete your application. If you’d like to proceed, submit any documentation required to support your application. This may include proof of ID, bank statements and proof of employment.
- Review the loan offer. When you get your official loan offer, read over it carefully. Check the interest rate, fees, loan amount, term and payment schedule before you sign. The money will typically be deposited into your account within one business day.
Compare payday loans for bad credit in Alberta
⚠️ Warning: Be cautious with payday loansPayday loans are expensive. If you're experiencing financial hardship call Credit Counselling Canada for free financial counselling (Monday-Friday 8:00am-5:00pm at +1 866-398-5999). Consider payday loan alternatives:
- Visit 211.ca. A free and confidential service that connects you to organizations that can help with finances, food, housing and more.
- Debt relief companies. There are services to help you reduce your debt payments.
- Payment extensions. Talk with bill providers about longer payment plans or due-date extensions.
- Side jobs. Sell unwanted items online, sign up for food delivery and more.
What are bad credit payday loans in Alberta?
Bad credit payday loans offer the following features to borrowers:
- Very expensive. Payday loans are notorious for their high interest rates, so it’s important to remember that you’ll end up repaying significantly more than you borrow. In Alberta, the maximum fee a lender can charge for a payday loan is $15 per $100 borrowed.
- Short repayment terms. According to regulations of payday loans in Alberta, the loan term must be between 42 and 62 days.
- Small loan amounts. You can typically borrow amounts ranging from $100 to $1,500 with a bad credit payday loan.
- You’ll need a regular source of income. Rather than focusing on your credit score, bad credit payday loan lenders will consider your ability to repay the money you borrow. As a result, you’ll need a steady source of income to qualify for a loan.
- Fast access to cash. Payday lenders make it possible to gain quick access to the funds you need – in some cases, you can access your loan amount within an hour.
Do I qualify for bad credit payday loans in Alberta?
Though eligibility requirements vary between lenders, you’ll typically need to meet the following criteria to take out a bad credit payday loan in Alberta:
- Be at least 18 years of age.
- Be a Canadian citizen or resident.
- Provide proof of regular income.
- Have a valid bank account.
What to watch out for with payday loans
While taking out a payday loan offers fast funds to help you deal with short-term financial difficulties, it’s also a very high-risk type of borrowing. Here’s what you need to watch out for:
- Borrowing more than you can afford. Before getting a payday loan, make sure you can repay your loan and you’ll have enough money left to pay for other expenses. Otherwise, you may find yourself needing to get another payday loan.
- Loan scams. The payday loans sector is notorious for attracting unscrupulous and disreputable lenders. Protect yourself against being scammed by researching the lender. Are they properly licensed? Are they upfront and transparent about how much your loan will cost? Do they follow the payday loan regulations in Alberta?
How to get a payday loan with bad credit
Here’s what you need to do to apply for a bad credit payday loan in Alberta:
- Consider other options. Payday loans are a very expensive form of borrowing, so make sure to explore alternatives to payday loans first. For example, maybe an installment loan could let you access the funds you need, or you could take out a guarantor loan that is cosigned by someone with a good credit score and steady income.
- Fill out an application. You’ll need to provide your name, address and contact details along with proof of ID, proof of income and your bank account details.
- Get approved. You’ll typically receive same-day approval from most payday lenders.
- Review and sign. Review the loan contract and check all the details carefully before you sign.
- Get your money. In many cases, the funds will be transferred into your account within an hour.
What can I use a bad credit loan for?
You can use a bad credit loan for just about anything, provided it’s nothing illegal. Most lenders don’t impose any restrictions on how you use the funds, so you might want to use your loan to do the following:
- Consolidate debt (learn more about debt consolidation for bad credit)
- Pay unexpected bills
- Cover essential expenses until your next payday
- Pay for car repairs
- Make a major purchase such as a new fridge or washing machine
Signs of a legitimate lender of bad credit loans in Alberta
How do you know whether a payday lender is legitimate? Look for the following signs:
- The lender is licensed. All payday lenders in Alberta must have a Payday Loan licence. Check if a provider is licensed by searching online through Service Alberta. You can also phone Service Alberta at 780-427-4088 (Edmonton and area) or 1-877-427-4088 (other areas in Alberta).
- The lender abides by payday loan regulations. Payday loans are regulated in each Canadian province. In Alberta, loans must be $1,500 or less, have a term of 42–62 days, and have a maximum fee of $15 per $100.
- The lender is easy to find and contact. Look for a lender with a physical address for their head office and that is contactable via email and phone.
- The lender is transparent about loan costs. Make sure the lender you choose is upfront and honest about how much the loan will cost you. If the rates are unclear or there are hidden fees, walk away.
- The lender doesn’t offer guaranteed approval. Reputable lenders will assess your financial situation before approving a loan, so promising guaranteed approval is a major red flag.
- The lender has positive reviews. Look for a lender with positive reviews on reputable sites like Trustpilot and the Better Business Bureau.
It’s still possible to get a loan even if your credit history is less than perfect. But bad credit personal and payday loans are expensive, so make sure you understand the total cost of borrowing before you apply. It’s also important to compare a range of lenders and loans to find the right loan from a reputable lender.
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