A poor credit score can limit your borrowing options, but there are still plenty of lenders that offer bad credit loans in Edmonton. Instead of looking at your credit score, these lenders will consider your income and your ability to repay what you borrow. The downside is that high interest rates often apply.
Let’s take a closer look at four types of loans for bad credit in Edmonton and how they work.
Option 1: Bad credit personal loans in Edmonton
Bad credit can make it difficult to qualify for a personal loan from traditional lenders like banks and credit unions. But there are many online lenders that are willing to offer personal loans to people with bad credit.
You can apply online within minutes, there’s no collateral needed, and some lenders offer same-day funding. Just watch out for high interest rates and make sure the lender is legit before you apply.
Compare bad credit personal loans
Features of personal loans for bad credit in Edmonton
These are the key features you’ll find when comparing bad credit personal loans in Edmonton:
- Loan amounts. You can typically borrow amounts ranging from $500 to $10,000.
- Loan terms. Most lenders offer terms of between 3 and 60 months, but you’ll find shorter or longer terms in some cases.
- Interest rates. Pay 18% - 47% APR.
- Turnaround time. Most lenders can deposit funds into your account within 24-48 hours.
Eligibility requirements of bad credit personal loans in Edmonton
The exact eligibility criteria you’ll need to meet vary from one lender to the next. However, you will generally need to:
- Be 18 years or older.
- Be a Canadian citizen or permanent resident.
- Have a valid Canadian address.
- Have a valid bank account.
- Receive a regular income.
Bad credit personal loans if you prefer to visit an Edmonton branch
|Lender||Loan amount||Loan term||APR||Location in Edmonton|
|Fairstone||$500 – $50,000||6 – 120 months||19.99% – 39.99%||6 locations|
|easyfinancial||$500 – $100,000||9 - 84 months||9.99% - 46.96%||8+ locations|
|Money Mart||$500 – $15,000||6 - 60 months||29.90% - 46.90%||15+ locations|
|Cashco Financial||$100 – $7,000||6 to 60 months||Up to 48.99%||14 locations|
|Blue Copper Capital||$1,000 – $100,000||6 - 36 months||14.00% - 33.00%||1 location|
Option 2: Payday loans for bad credit in Edmonton
Payday loans are small, short-term loans named for the fact that they’re usually designed to be repaid by your next paycheque. They offer quick and easy access to cash, but be warned that they’re extremely expensive. That’s why you should only ever consider a payday loan as a last resort.
Compare bad credit payday loans in Edmonton
Features of payday loans in Edmonton
These are the features you can expect when you compare payday loans in Edmonton:
- Loan amounts. In Alberta, provincial regulations limit payday loans to $1,500
- Loan terms. The term of the loan must be between 42 and 62 days.
- Interest rates. The maximum amount a payday lender can charge you in Alberta is $15 for every $100 borrowed. This often works out to an APR of 100% or more.
- Eligibility requirements. Eligibility criteria for payday loans are quite lenient. You’ll need to prove that you have a steady source of income, and some lenders accept non-employment income such as government benefits.
- Turnaround time. The fastest payday loans allow you to apply, get approved and get funded within an hour, with the funds available as cash or sent to your bank account via e-transfer. Some lenders also approve and fund loans 24/7.
Before you apply for payday loans in Edmonton
It’s vital that you know exactly what you’re getting into before you apply for a payday loan:
- Check the APR. The annual percentage rate shows you the true cost of a loan, and it’s commonly in triple figures with a payday loan. With the high cost of borrowing and short repayment terms, payday loans are a very expensive way to borrow money.
- Consider your budget. Will you be able to afford to repay the loan and still pay for all your other regular expenses?
- Make sure the lender is legit. The payday lending space is notorious for predatory lenders and scammers. Check with Service Alberta to make sure the lender has a valid payday lending licence, and make sure they follow the payday lending rules in Alberta.
Bad credit payday loans if you prefer to visit an Edmonton branch
|Lender||Loan amount||Loan term||APR||Location in Edmonton|
|Money Mart||$120 – $1,500||Up to 62 days||Varies by province||15+ locations|
|Blue Copper Capital||$1,500||42-62 days||Varies||1 location|
Option 3: Secured personal loans for bad credit in Edmonton
When you take out a secured personal loan in Edmonton, you can use an asset you own (such as your car or your home) as collateral for the loan. Not only will this boost your chances of getting approved, it can also help you access a higher loan amount and lower interest rate than you could get on an unsecured loan. The risk is that your asset could be repossessed if you default on the loan.
Compare secured bad credit loans in Edmonton
Features of secured personal loans for bad credit in Edmonton
Secured personal loan features can vary depending on the type of asset you provide as collateral:
Car title loans in Edmonton (using your car as collateral)
Car title loans are secured to the title of your car. You’ll need to have fully paid off your car to qualify for this type of loan, and it’ll need to be in good to excellent condition. You can also keep using your car while you make loan repayments, and you typically won’t need to undergo a credit check to qualify.
Features to look for include:
- Loan amounts. You can usually borrow between 25% and 50% of the value of your vehicle, but most lenders have maximum loan limits ranging from $25,000 to $50,000. You may need to have your car physically inspected to have it appraised, but some online lenders simply require you to submit photos of your vehicle.
- Loan terms. You’ll commonly have between 3 - 60 months to pay off your loan.
- Interest rates. Pay APR.
- Turnaround time. Get your funds within 24-48 hours.
Home equity loans in Edmonton (using your home as collateral)
If you’ve built up equity in your home, you could use that to secure your loan with a home equity line of credit (HELOC). Of course, this means putting your home at risk if you default on payments.
Features to look for include:
- Loan amounts. The amount you can borrow is calculated based on the equity you have built up in your home. Work this out by subtracting your outstanding mortgage balance from the value of your home.
- Loan terms. Terms of up to 240 months are available.
- Interest rates. Pay 10%–29% APR.
- Turnaround time. You can get a home equity loan with bad credit in Edmonton in as little as two business days. You’ll need to allow time for your home to be appraised before your loan can be approved.
Option 4: Lines of credit for bad credit in Edmonton
When you open a line of credit for bad credit, you get access to a revolving line of credit you can use however you wish. You can use a percentage of your credit limit or the full amount, but you only pay interest on the funds you use.
There’s no fixed repayment schedule, so you can pay back what you borrow at a pace that suits you. That said, minimum monthly payments are required, and the high interest rates on lines of credit for bad credit mean it’s worth paying more than the minimum amount to minimize interest charges.
Compare online lines of credit in Edmonton
Features of lines of credit for bad credit in Edmonton
Here’s what to expect when you apply for a bad credit line of credit:
- Loan amounts. Some lenders will approve you for a credit limit of up to $10,000.
- Loan terms. Lines of credit are open-ended, so you don’t have to pay back the credit you use by a set date. Of course, faster repayment means you can reduce interest charges.
- Interest rates. Interest is charged at a rate of up to 47.42%.
- Turnaround time. You can apply, get approved and get funded within 24-48 hours.
Where can you apply for bad credit loans in Edmonton?
Traditional lenders like banks and credit unions usually require you to have a good to excellent credit score of 660 or higher. So if you’re searching for bad credit loans in Edmonton, you’ll need to compare online and alternative lenders.
These lenders will look past your credit score to determine whether you can afford to repay your loan. They check to make sure you’re in steady employment and have a regular source of income before approving your loan.
It’s quick and easy to apply for bad credit loans online, with paperless applications and same-day funding via e-Transfer available. However, if you’d rather apply in person, some lenders operate Edmonton branches.
How to get the best bad credit personal loan in Edmonton
Make sure you consider the following factors when comparing bad credit personal loans:
- Interest rate. Bad credit loans come with higher interest rates than regular personal loans. Interest of up to 47% may apply.
- Fees. Origination fees can significantly increase the cost of your loan, so check the APR (which combines the interest rate and origination fee) to get a better idea of how much you’ll have to pay.
- Secured vs unsecured. You can provide collateral for your loan to access a better rate and larger loan amount. However, you can also qualify for an unsecured personal loan that doesn’t require you to put any assets at risk.
- Loan amount. The maximum amount you can qualify for will depend on your financial circumstances. As a general guide, most lenders will offer loans of up to $10,000 to bad credit borrowers.
- Loan term. A longer loan term means your monthly payment will be more manageable, but you’ll pay more interest over the life of the loan. Terms ranging from 3 to 60 months are available from most lenders.
- How fast you can get it. Need money ASAP? Some lenders are faster than others. Check out our list of emergency loans to get your loan in as little as 30 minutes.
- Lender reputation. Read customer reviews on independent websites to make sure the lender is a trusted provider. You can also check with the Better Business Bureau for any alerts or warnings about the lender.
- Credit bureau reporting. Some lenders report on-time loan payments to the credit bureaus, helping you improve your credit score, but others don’t. The higher your credit score, the better your chances of loan approval in the future.
How to apply for bad credit loans in Edmonton
When you’re ready to apply for a bad credit loan in Edmonton, here’s what you need to do:
- Compare lenders and loans. Research lenders that offer loans for bad credit near you, and do your due diligence to make sure any lender you consider is a legit provider. Once you’ve found some suitable options compare loan APRs, terms, amounts and eligibility criteria to find the loan that’s right for you.
- Apply online. Most lenders make it easy to apply for a loan online. Provide your personal details and contact information, plus details of your income and employment.
- Submit supporting documents. Upload any documents the lender requires, such as proof of ID, bank statements or personal references. Many lenders offer online bank account verification to make the approval process easier.
- Review the contract and sign. Read the loan contract carefully to make sure all the details are correct before you sign.
Can you get an instant loan for bad credit in Edmonton?
If you need money fast, payday lenders offer instant bad credit loans. If you meet income and employment requirements, you can apply and get funded within an hour. There are no credit checks required.
Some online payday lenders approve and fund loans 24/7. They use automated approval systems to speed up the process, and distribute funds via e-Transfer within minutes.
You can also get an instant payday loan by visiting a payday lender’s branch. Make sure you check the lender’s eligibility requirements ahead of time and take along any documents they need to approve your loan. You can then apply and get approved for a fast cash loan within minutes.
Can you get no credit check loans in Edmonton?
Yes. Online lenders that work with bad credit borrowers offer no credit check loans in Edmonton. They assess your income and employment situation before deciding whether to approve you for funding, but you’ll need to watch out for high interest rates.
Payday lenders also won’t require you to complete a credit check, with approval dependent on your income. Just remember that payday loans are very expensive, so you should only ever consider a payday loan for a financial emergency.
Questions to ask yourself before taking out a bad credit loan
If you’re thinking of applying for a bad credit loan, ask yourself a few key questions first:
- How much will it cost? The APR combines the interest rate and the origination fee to give you a more complete picture of the total cost of a loan. Use the loan calculator below to calculate the full cost of borrowing. As a general guide, the APR range is as follows for different types of loans:
- Unsecured personal loans (bad credit): 18% - 47%
- Vehicle title loans:
- Home equity loans: 10%–29%
- Payday loans: Over 88%
- How long do I have to pay it back? Check how long you have to repay what you borrow, and the portion of each payment that will go towards the principal or interest. Will repayments be monthly, fortnightly, or weekly?
- Do I need loan insurance? Some lenders will try to sell you loan insurance to cover your loan payments if you lose your job or suffer a serious illness or injury. But please note that loan insurance is optional, not mandatory, so steer clear of lenders that say you have to get it to qualify for a loan.
- Can I afford this loan? Borrowing when you have bad credit is expensive. Make sure you can afford your loan repayments and still have more than enough money left over to cover your regular expenses. If not, you’ll be better off taking steps to rebuild your credit score before applying for a loan.
How much do bad credit loans cost?
The total cost of a bad credit loan in Edmonton varies depending on the type of loan as well as how much you borrow, the APR and how long you have to pay it back. Let’s take a look at the example of a $1,200 loan.
As you can see in the table below, the payday loan is an extremely expensive option, with an APR of 130%. And while the personal loan has a higher interest rate than the car title loan, the latter’s longer loan term means you pay more interest in the long run.
|Loan amount||Interest rate||Loan term||Total loan cost||Interest charged|
|Personal loan||$1,200||46.96%||6 months||$1,369.61||$139.61|
|Payday loan||$1,200||$15 per $100 borrowed (which works out to an APR of 130%)||42 days||$1,380||$180|
|Car title loan||$1,200||35%||12 months||$1,439.47||$239.47|
Use the calculator below to work out how much your bad credit loan will cost to repay.
Personal loan calculator
|Loan terms (in years)|
Fill out the form and click on “Calculate” to see your estimated monthly payment.
orCompare personal loans
Based on your loan terms
How to use this personal loan repayment calculator
- Enter the amount you want to borrow under Loan amount.
- Write the loan term in years (not months) under Loan terms.
- Enter the loan’s interest rate if there are no fees under Interest rate. Otherwise, write the annual percentage rate (APR), which includes interest and fees.
- Hit Calculate.
- Review your results.
How to increase your chances of getting approved
If your credit report makes for painful reading, there are several simple things you can do to boost your chances of qualifying for a loan:
- Get a cosigner. If you can find someone with excellent credit who is willing to cosign your loan, it’ll give your approval chances a big boost. However, your cosigner will be held responsible for repaying the loan if you can’t, so think carefully before taking this step.
- Avoid NSF transactions. If your bank account shows any NSF fees in the past 90 days, it’ll be much harder to qualify for a loan. Focus on making on-time payments in the months leading up to submitting your application.
- Improve your credit score. Before you apply, paying down existing debts and taking steps to improve your credit score will boost your creditworthiness in the eyes of lenders. It’ll also help you qualify for a better interest rate.
- Provide collateral. Offering an asset as security for the loan reduces the risk for the lender — they can repossess and sell the asset to cover their losses if you default on the loan.
- Double-check your application. A simple typo could cause your application to be rejected, so make sure you’ve entered all details correctly before submitting.
Frequently asked questions about loans for bad credit in Edmonton
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