Bad credit loans in Alberta
Find out if you qualify for a bad credit loan and compare lenders in Alberta to get the best deal.
If you have bad credit, it can be difficult to take out a loan to cover your expenses. That’s where bad credit loans come in. These loans are designed to give people with poor credit access to quick cash. However, they often come with much higher interest rates than traditional loans. We’ll help you compare lenders, find out more about bad credit loans and apply today.
How do bad credit loans work?
Bad credit loans are usually small loans (between $500 and $20,000) with high interest rates. They’re often used to help pay for unexpected or emergency expenses. For example, if your car breaks down and you need money for repairs. They can also be used to help finance large purchases, bill payments and outstanding debts.
If you want to get approved for a bad credit loan in Alberta, you’ll need to show that you have a way to pay the money back. This will often require proof of income or other money coming in (such as your pension, EI or the Canada Child Benefit). Once you’re approved, you’ll need to pay your loan back in regular installments over a set period of time. This will require you to stay on top of payments to avoid defaulting on your loan and damaging your credit score further.
Compare loans in Alberta for poor credit
Select Compare to see if you meet the lender requirements before applying.
Types of bad credit loans
Bad credit loans come in all shapes and sizes, but a few of the most common types include:
- Secured loans. Secured loans require you to put up collateral (like your house or vehicle) which the lender has a right to sell if you don’t pay back your loan.
- Unsecured loans. With an unsecured loan, you can borrow money against your credit score (no collateral required), but your score will go down if you fail to make repayments.
- Guarantor loans. A cosigner needs to guarantee your payments which means they’ll be on the hook to cover your balance if you default on your loan.
- Peer to peer loans. These loans offer an innovative and mostly online approach to lending, where you borrow money from private investors rather than institutions.
Can I get a personal loan approved without a credit check?
There are many lenders that will offer loans without a credit check. The only thing they’ll make sure of is that you have a stable source of income. You’ll typically need to prove steady employment or show them that you receive enough money each month to cover your payments. Some lenders will only offer no credit check loans if you put up some form of collateral or asset to secure your loan or find a cosigner to guarantee your payments.
Where can I get a loan with bad credit in Alberta?
To find a bad credit loan in Alberta, you can start by comparing reputable lenders above. You can also reach out to the following institutions:
- Big banks. It’s unlikely that you’ll be able to get a bad credit loan from your bank but if you’re a long-time customer, there’s no harm in asking.
- Credit unions. Credit unions often have more relaxed lending criteria than big banks and some even offer low-interest rate programs for borrowers with bad credit.
- Local lenders. There are private lenders (such as easyfinancial) that can offer more favorable rates, with branches all across Alberta.
- Online lenders. Many online lenders offer high-interest loans but others have better terms. It pays to compare 3-4 lenders before settling on the right provider for you.
How do I apply for a bad credit loan?
- Apply online or in-person. You’ll need to fill out an application and provide personal information like your full name, address and contact information.
- Verify your identity. Reputable lenders will ask for a government-issued piece of ID like your Alberta driver’s licence or passport.
- Show proof of income. You may need to submit your pay stubs, tax returns or bank statements to show proof of income.
What should I look out for?
- High interest rates. Your lender may charge you unreasonably high rates, which could end up costing you thousands of dollars in the long run.
- Penalties and fees. Some lenders will bury hidden fees and charges in your contract so be sure to read the fine print thoroughly.
- Fraudulent lenders. It’s illegal for lenders to charge fees to clients before paying out their loan. Don’t hand any money over until you’ve received the full amount of your loan.
- Multiple credit checks. Every credit check on your account will bring your credit score down even further so only apply for loans you know you’ll qualify for.
- Borrowing too much. Only borrow what you know you can pay back to avoid getting stuck in a cycle of debt that drags your credit score down further.
Other options available for people struggling with bad credit
- Government subsidies. You may be able to qualify for low-income funding programs like Income Support, Affordable Housing and Alberta ALIS.
- Credit builder loans. These programs report every on-time repayment you make on your loan to the credit bureaus to help you build your credit score.
- Credit counselling services. Credit counselling services in Alberta can help you make a budget and manage or consolidate your debts.
- Borrowing from friends or family. If you’re swamped with debt, sometimes it can help to reach out to family and friends for support.
- Getting a cosigner. The best way to get a loan with decent interest rates is to ask someone with good credit to cosign for the loan.
If you’re struggling with poor credit, you could qualify for a bad credit loan, but keep in mind that these loans typically come with higher interest rates. Find out if you could benefit from a bad credit loan and compare lenders in Alberta to find the right loan for you.