Compare different types of personal loans in Calgary to find the right loan for your unique situation. Learn the steps you can take to find the best deal, what to look for when choosing a loan, how to apply and what eligibility criteria you need to qualify.
Compare personal loans in Calgary
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How to find the best personal loan in Calgary
Follow the three steps below to find the best personal loan in Calgary:
1. Decide which type of personal loan works best for you
Choose the best loan type for your personal situation based on the following categories:
Unsecured personal loans rely on your credit score to get you approved but come with higher interest rates. Secured personal loans require you to put up an asset such as your house or car to secure your loan, but you’ll get lower rates.
The rates for fixed rate personal loans stay the same for the life of the loan and don’t fluctuate based on market conditions. Variable rate loans are less predictable and rates may change over time, in line with the prime rate of Canada.
With individual loans, you’re solely responsible for repaying the loan and your credit score will go down if you default. With cosigned personal loans, someone with good credit can “sponsor” you for a loan, but they’ll be responsible for repaying the loan if you default, and both of your credit scores will suffer.
2. Compare different types of lenders
Compare multiple lenders to find the right fit for your personal needs.
Private lenders of personal loans operate online and offer loans to people with good or bad credit. They usually offer higher interest rates than banks or credit unions, but have much more flexible eligibility requirements.
Canada’s Big Five banks and other major financial institutions tend to offer lower interest rates than online lenders, but they usually have stricter eligibility requirements and are not ideal for people with bad credit.
Credit unions offer competitive interest rates and loans that are more flexible than big bank loans. You’ll usually need to apply to be a member of the credit union and have good to excellent credit to qualify.
3. Consider the following key features to get the best loan for your needs
Think about the following factors before you decide on the right loan for you.
Personal loan rates range from 6.99% to 46.96%. Compare 3-4 lenders to get the lowest interest rates and make sure to calculate the annual percentage rate (APR), which is the annual interest rate plus fees, for a true representation of cost.
As a general guide, you can borrow amounts ranging from $500 to $50,000. However, maximum loan amounts vary between lenders and depend on factors such as your credit score and income.
Aim for a longer term (3-5 years) to get lower monthly payments, and a shorter term to pay less interest over time. You’ll also want to search for a lender that gives you the option to make payments on your own schedule – whether that be weekly, biweekly or monthly.
Find out what fees might apply to your loan in different situations. Fees to watch out for include origination fees (fees to process your loan), NSF fees, late payment fees, prepayment penalties or costs related to loan insurance.
Make sure you meet the baseline criteria for the lender you’re interested in. The lender may require you to have a certain residency status, credit score, income or employment status to qualify.
Check sites like Google, Better Business Bureau and TrustPilot to get an indication of what type of customer service you might receive. You may want to avoid a lender with a noticeable pattern of complaints.
What are the eligibility requirements of personal loans in Calgary?
You’ll typically need to meet the following criteria to qualify for personal loans in Calgary:
Be 18 years old or the age of majority in your province or territory. You’ll need to provide a government-issued ID or validate your identity through your bank.
Be a Canadian citizen or a permanent resident. You may have to validate your address using a utility or phone bill, or by showing proof of ID.
Have a bank account. You’ll need to provide your direct deposit info or a void cheque so your lender can arrange to deposit funds and withdraw repayments.
Have proof of regular income and ongoing employment. Some lenders accept government benefits, pension or self-employment income while others only take employment income.
Meet the minimum credit score. Some lenders are willing to work with borrowers who have bad credit, no credit or a history of bankruptcies and consumer proposals. Others have strict minimum credit scores you must meet to qualify.
What are the interest rates of personal loans in Calgary?
The rates you get for your loan will depend on factors such as your credit score, term and whether you get a secured or unsecured loan. The rates you’ll get for unsecured personal loans in Calgary typically range from 9.75% to 46.96%. You may qualify for a slightly lower interest rate with secured loans if you put up an asset as collateral.
Representative example: Cost of a $5,000 personal loan in Calgary
Compare how much you might pay for an unsecured $5,000 personal loan in Calgary over 3 vs 5 years:
Amount
Interest rate
Interest over 3 years
Interest over 5 years
$5,000
7.99%
$639.72
$1,081.48
$5,000
10.99%
$892.12
$1,521.23
$5,000
16.99%
$1,416.60
$2,454.16
This example shows how your interest rate and term can have a big impact on your overall loan amount. The lower the rate and the shorter the term, the less you’ll pay in interest over time.
Can I get approved for a personal loan with bad credit?
You can definitely get approved for a bad credit loans in Alberta if you know where to look. With a bad credit loan, lenders will usually look at factors such as your income and employment status to get you approved instead of your credit score. However, you’ll almost always pay higher interest rates with bad credit loans.
There are two main types of bad credit loans available:
Secured loans. Use an asset such as your home or car to secure your loan. Interest rates range from 9% to 49% for bad credit. Just be prepared to forfeit your asset if you default on your loan.
Unsecured loans. With no asset, your interest rates will be higher, typically ranging from between 18% and 47%. Your credit score will go down if you miss payments or fail to pay back your unsecured bad credit loan.
You may also be eligible for bad credit payday loans if you need a small amount of cash to hold you over between paycheques. That said, these loans should be used as a last resort option since they’re extremely expensive and must be repaid very quickly (usually in 2 weeks). Best bad credit loans in Canada
How to apply
Follow the steps below to apply for personal loans in Calgary:
Apply for pre-approval. Compare several lenders and apply to get pre-approved for a personal loan with your top choices. Fill out applications with personal info such as your name, address, phone number, email, employment, income and housing situation.
Pick the best personal loan. Compare the pre-approval offers you get back and pick the best personal loan for your needs. Aim for the loan with the lowest rates, fees and the most flexible repayment terms.
Submit a formal application. The lender you choose may need you to submit a more detailed application to formally apply for a loan (on top of pre-approval). You’ll typically need to submit documents for your loan at this point, such as ID, bank statements, etc.
Submit to a credit check. You may need to consent to a credit check with some lenders. A hard credit check can affect your credit score and should be done sparingly.
Get a final loan offer. Review your loan agreement. Understand your payment schedule and how much the loan will cost you overall. Keep an eye out for extra fees.
Sign and submit. If you’re happy with the terms of your personal loan, sign and submit your loan agreement. You’ll usually get your money via e-transfer or direct deposit.
Personal loans in Calgary if you prefer to visit a branch
If you’d prefer to apply for a loan in person, consider the following private lenders. Big banks are another option for in-person service but they aren’t covered below.
Residents of Calgary have some of the highest levels of unsecured debt in Canada. It’s important to make sure your income can support taking on new debt before you apply for personal loans in Calgary.
Debt in Calgary
According to Equifax, the average unsecured debt for Calgary residents in the second quarter of 2022 was $24,987. This is compared to Edmonton residents, who carried a slightly lower debt of $24,259. The average level of debt for people across Canada was $20,744.
Income in Calgary
According to Statistics Canada, the average income in Calgary was $44,800 in 2020. This is on par with the provincial average of $44,800, and slightly lower than the average income in Edmonton ($45,600). These figures include all types of income, such as employment, rental, investment, retirement and government benefits.
Frequently asked questions
You can use a personal loan in Calgary for just about anything you need. For example, you can use funds to consolidate debt, pay off bills or home renovations, cover emergency expenses or pay for a large one-off expense such as a car, piece of furniture or home appliance. You can also use them to pay for a big life event such as a vacation or wedding.
You can, but it’s important to be wary of lenders that advertise “no credit check” loans since they may be fraudulent. Lenders that offer legitimate no credit check loans are usually payday lenders. Otherwise, most reputable lenders will require you to submit to a credit check, even if they know your credit is bad.
It depends on the lender you go with. Some lenders let you borrow up to $50,000 while others will limit you to between $5,000 and $35,000. The amount you qualify for may also depend on factors such as your credit score and income.
Claire Horwood is a writer at Finder, specializing in credit cards, loans and other financial products. She has a Bachelor of Arts in Gender Studies from the University of Victoria, and an Associate’s Degree in Science from Camosun College. Much of Claire’s coursework has focused on writing and statistics, with a healthy dose of social and cultural analysis mixed in for good measure. In her spare time, Claire enjoys rock climbing, travelling and drinking inordinate amounts of coffee.
Find out the benefits and drawbacks of taking out a personal loan with a credit union.
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Residents of Calgary have some of the highest levels of unsecured debt in Canada. It’s important to make sure your income can support taking on new debt before you apply for personal loans in Calgary.