Explore installment loans in Alberta

How does an installment loan in Alberta work?

With installment loans, you borrow a lump sum that you’ll repay with biweekly, semi-monthly or monthly payments. Typically, the interest rate is fixed, so it’ll stay the same throughout the loan term, and there’s no collateral involved.

Can I get an installment loan with no credit check?

You can, from short-term installment loan lenders like Credito and 24Cash. These loans typically cap at $1,500. Interest rates hover around 20%, but a broker fee in the hundreds also typically applies. If we count the broker fee, the APR is over 100%.

What are the best installment loans in Alberta?

Based on our methodology, the best installment loans in Alberta from loan search platforms are LoanConnect, Loans Canada and Fat Cat Loans. The best installment loans from direct lenders are easyfinancial, Spring Financial and Blue Copper Capital. We took into account key features such as loan amounts, loan terms, rates, fees, eligibility criteria and application process.

What can I use an installment loan for?

You can generally use online installment loans in Alberta for any legitimate purpose. However, it might be best to save them for emergencies, since they can come with higher interest rates than other types of personal financing. You can use installment loans for:

• Medical expenses. Sometimes, healthcare providers don’t provide financing that all patients can qualify for. An installment loan can help make paying off medical bills more manageable, although more expensive.
• Home or car repairs. Got a home or car that needs urgent repairs? Installment loans can help you cover that cost, no matter what your credit type is.
• Overdue utility bills. An installment loan can help you keep the lights on, water running, and phone line working when you don’t have the funds to make your utility payments on time.

What do I need to apply for installment loans in Alberta?

You can apply for installment loans if you have bad credit or are on a lower income, as long as you can show that you can afford the repayments. Generally, lenders in Alberta will look at your income, credit history and employment information to determine your eligibility for a loan.

You will meet the following basic eligibility criteria:

• Proof of income. This doesn’t mean you need to be employed full time, but you may need some income, whether it is disability, welfare, a pension or a part-time job.
• Active bank account. If you don’t have a bank account, you can sometimes get a cash installment loan from a physical branch location.
• Valid government-issued ID. Lenders might ask to see your driver’s licence to verify that you meet the age requirements. You will typically need to be 18 years old, which is the age of the majority in Alberta.
• Canadian citizen or permanent resident. You’ll typically need to be a Canadian citizen or a permanent resident to apply for a loan.

Applicants with good to excellent credit scores are more likely to get a good rate on online installment loans. That’s because many lenders use underwriting software that relies heavily on your credit history when determining your eligibility. Learn more about personal loan rates.

How much does an installment loan cost?

The cost of installment loans in Alberta depends on the loan amount, loan term and interest rate. Let’s say you need a loan to pay for unexpected car repairs. You then decide to get a $2,000 loan and commit to paying it back over 2 years with a 25% interest rate. Based on these factors, you can expect your monthly payment to cost $106.74, which amounts to $561.83 in interest and a total cost of $2,561.83 for your installment loan.

How to compare installment loans in Alberta

There are plenty of options for you. It’s easier to find the best deal if you know which factors to compare before settling on a lender.

• Interest rates. Finding low interest rates can save you thousands of dollars over the term of your loan. Ask your lender if it’s willing to price-match or negotiate better rates for a shorter term.
• Fees. Some lenders will bury hidden fees and charges in your contract. Make sure to read the fine print thoroughly and ask for a full breakdown of costs and fees for your loan.
• Total amount. Many lenders have set minimum and maximum amounts they’re willing to give out. Find out how much your lender can shell out and make sure it offers a suitable term for repayment, no matter the amount.
• Length of term. If you want to keep your payments small, you should aim for a longer-term loan. If you want to pay it off quickly, look for a shorter term with an affordable repayment plan.
• Conditions for repayment. Look for a loan with flexible terms and find out what will happen if you default on your loan, especially if it’s secured with collateral.

Am I eligible for installment loans if I have bad credit?

Installment loans can be a good option for Albertans with bad credit. Many lenders are willing to work with borrowers who have credit scores in the 300 to 560 range. Compared to payday loans, installment loans usually come with lower interest rates, making them worth considering if you’re trying to rebuild your credit.

Bottom line

If you have to cover emergency or unexpected expenses, installment loans in Alberta are worth considering, especially compared to more expensive options like payday loans. Keep in mind that even though bad credit borrowers can qualify for installment loans, the high interest rates can still make the repayments difficult to afford. That’s why it’s important to compare installment loans to find a loan with interest rates, fees and conditions of repayment that suit your financial situation.

Frequently asked questions

• Can I pay my installment loan back early in Alberta?

  Yes, you typically can. Installment loans are unsecured, so there are no prepayment penalties to worry about.

• What happens if I default on my installment loan in Alberta?

  Lenders in Alberta will likely report any missed payments or defaulted loans to Canada's credit bureaus, which means your credit score will go down. You may also be charged additional fees from both the lender and your bank. If you think you might default on your installment loan, contact your lender as soon as possible to discuss your options.

• How much can I borrow with an installment loan in Alberta?

  Although some lenders have smaller or larger loan caps, Albertan lenders typically offer as much as $10,000 for an installment loan. The amount you can be eligible to borrow with an installment loan varies based on your monthly income, credit score, what you need the money for and the maximum loan amount available from your lender.

• What is the difference between installment loans and payday loans in Alberta?

  Payday loans are one of the most expensive types of personal financing on the market. The maximum you can borrow with a payday loan in Alberta is $1,500, and you'll be charged $14 for every $100 borrowed. Alternatively, you can usually borrow up to $10,000 with installment loans in Alberta, with interest rates generally ranging from 18% to 35%.

Written by

Leanne Escobal

Publisher

Leanne Escobal is a publisher at Finder with more than 12 years of experience in financial products and services, with a focus on content strategy and marketing. She has completed the Canadian Securities Course (CSC®) as well as the Personal Lending and Mortgages course through the Canadian Securities Institute. Leanne holds a Bachelor of Arts (Honours) in English literature and creative writing from Western University. See full bio

Leanne's expertise

Leanne has written 175 Finder guides across topics including:

• Personal Loans
• Car Loans
• Business Loans
• International Money Transfers
• Make Money Online

Co-written by

Claire Horwood

Associate editor

Claire Horwood was 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. See full bio

Claire's expertise

Claire has written 360 Finder guides across topics including:

• Banking
• Personal Loans
• Car Loans
• Business Loans
• Credit Cards