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Getting a loan without a great credit score can be stressful. If you have already started looking for a bad credit loan in Alberta without the best score, you’ve probably noticed that the bigger banks and lending institutions don’t work with credit scores outside of a small range. But these aren’t the only options available in Alberta. Finding a loan with a low credit score doesn’t have to mean applying for an endless number of loans with providers that don’t have the right terms for you. If you’re looking to get an Alberta bad credit loan, you want to work with a great company and receive your funding as quickly as possible. Smarter Loans can help. There are better options available for Alberta bad credit loans.
There are several firms in Alberta that offer online installment loans and will work with a lower credit score without breaking your bank. Online loans offer easy applications online, and access to your money in a few hours. Getting approved is also far easier than getting approved for a traditional loan.
Check out the list of most reputable personal loan providers in Alberta below. Many of them offer bad credit loans at low interest rates. Fill out an application with one of these lenders, or if you aren’t sure who might work for you, submit a form here to get help choosing a provider.
Our online portal helps you choose appropriate Bad Credit Loan lenders in Alberta for your borrowing needs.
See our pool of Bad Credit Loan companies to compare the most competitive Bad Credit Loan rates in Alberta.
A bad credit loan is a type of personal loan for people with bad credit. These loans are necessary because people with bad credit struggle to access financing through traditional lenders that impose strict eligibility criteria. Banks and credit unions simply won’t lend to those with bad credit. So if you’re a resident of Alberta, struggling for cash, and have a low credit score, then a bad credit loan is probably your most viable financing option.
Credit scores are an important aspect of your financial profile; every consumer has one, and they range from 300 to 900. The higher your score, the more financially secure you are considered to be. The average score across Canada is 650, but the average in Alberta is a little lower because of high levels of debt across the province. Calgary’s average score is just under 650, while Edmonton’s is 625. Anything lower than 600 is considered bad and will automatically disqualify borrowers from bank and credit union loans.
Credit scores are calculated using complex formulae based on a few key factors:
Your score is intended to reflect your likely ability to repay loans as agreed, and a low credit score can happen for a number of reasons: failing to make debt payments on time, a past bankruptcy or consumer proposal, high levels of debt, and so on.
There are many ways to find out your current credit score, including accessing the information via a credit bureau (such as Equifax or TransUnion), speaking to your bank or credit union, or via an online tool. Knowing your score is an important part of understanding your financial profile, and if you have a low score, understanding why can help you to improve it in the future.
Eligibility for a bad credit loan in Alberta depends mostly on the lender you choose. There are only three musts for all Albertan loans: you must be at least 18 years old, you must be an Albertan resident, and you must have an active bank account. Some lenders may also require you to have some form of income, to provide collateral for the loan, or to show other financial documentation. Always check your chosen lender’s eligibility rules before you apply for a loan.
Alberta has plenty of financial providers for its 4.3 million residents to choose from, and many of these accept bad credit applicants. These providers fall into several categories:
Choosing between these is a matter of considering how much you need to borrow, for how long, and how much you can afford to pay in interest and fees. It’s also important to consider how quickly you need the money – some providers offer same day approvals, while others may take a few days to process your application.
Interest rates are the single most important factor to consider when calculating the cost of a loan, and unfortunately bad credit loans have higher interest rates than other types of personal loan. This is because lenders are offsetting their higher risk by charging more. The average interest rate on a bad credit loan in Alberta is 20%; this can fall to as low as 5% in some situations, or rise to over 40% in others. The best interest rates are reserved for those in the most secure financial positions.
The amount you can borrow with a bad credit loan depends on the type of loan you get, the provider you choose, and your exact financial circumstances. The better off you are, the more you’ll be able to borrow. Borrowing amounts for personal loans range from as little as $500 to as much as $50,000.
Borrowers pay for their loans in two ways: via interest charges, and via fees. The interest rate you’ll pay on your loan should be obvious, and is probably a deciding factor for you as you try to choose an affordable loan. But don’t discount fees, as they can build up quickly. Fees you may face include:
Not every lender will charge every fee, and the size of fees varies, so always ask about fees before agreeing to any loan. A reputable lender will always be transparent about their fees.
Taking out any loan will temporarily lower your credit score to reflect your higher debt burden. However, there will only be a long term negative effect if you fail to pay back the loan as agreed. If you make your loan payments on time, you will actually help to improve your credit over time – by establishing a history of reliable repayment. This is one way in which those with bad credit help to improve their score over time.
Payday loans are very popular across Alberta, but they should be used with caution as they have high interest rates, which quickly compound. For anyone seeking a loan of more than a few hundred dollars, or for longer than a few weeks, there are almost certainly more affordable options. But if you need cash-in-hand straight away, and know you can pay it back very quickly, then a payday loan may be a reasonable option for you.
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