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If your credit isn’t exactly perfect, you’ve probably had a pretty hard time trying to find financing in Calgary. Though the situation you’re in is frustrating, you aren’t the only one in Calgary with bad credit. Though it’s true that most of the larger financial institutions, such as the big banks, don’t tend to accept borrowers with bad credit, there are many loan providers in Calgary that are able to provide bad credit loans with reasonable interest rates. For example, Credit Unions and Secured Savings loans are worth looking into around town. However, if you’re looking for a loan that won’t have interest rates that you can’t meet, an online loan in Calgary is a perfect solution.
Smarter Loans’ list of lenders will help you find a reputable loan with good conditions. Many of our lenders are able to offer you financing even if your credit score is lower than average, and applying for and paying back a loan in a timely manner can actually seriously help your credit score. Our list of lenders offers you a variety of different firms with different payment periods, interest rates, and qualifications. Don’t let a low credit score stop you from moving forward. Take a look at the list of lenders below and start an application an application online. You can even apply right here on Smarter Loans!
Qualifying for a bad credit loan in Calgary starts with being age of majority, which is 18 years or older. You then need to be able to prove your residency and ID, and have an active bank account. These are the basic qualification criteria that all loan companies will adhere to; after this, there may be lender-specific requirements, such as proving your income or providing certain financial documents. Because we’re talking about bad credit loans here, the standard requirement of a minimum credit score will not apply.
Applying for a bad credit loan in Calgary is a very simple process, and just requires you to compile some documentation beforehand. This includes ID, proof of address, bank account details, and proof of income or financial statements if required by the lender. You will then need to complete the lender’s application form, attach your supporting documentation, and submit for approval. Many lenders have online application methods available, making the process fast and convenient.
Bad credit loans come in all shapes and sizes. The average interest rate for a bad credit loan in Calgary is around 20%, but the range can be anywhere from 5% to over 40%, depending on your circumstances and the loan you’re taking out. Loans can be short term – lasting just a few months – to long term, lasting up to five years. Shorter term loans generally have higher interest rates and are for smaller amounts.
If you’re hoping for a good interest rate on a bad credit loan, then you may have some options, but be aware: interest rates on bad credit loans are always a little higher than on standard personal loans. So while there are factors that can help you to qualify for as low a rate as possible (including your income level, exact credit score, collateral, down payment, loan size and term, and so on), you are unlikely to find an interest rate below 5% with a bad credit loan.
Just because you have bad credit, doesn’t mean you can’t borrow a reasonable amount of money. As long as you can prove to a lender that you are able to make your debt payments, loans up to $50,000 are available to bad credit borrowers. But always be aware of the cost of borrowing, and never borrow more than you need.
As Canada’s third largest city, Calgary has plenty of options for its bad credit residents. This includes: dedicated bad credit financial service providers, who specifically work with bad credit borrowers; payday loan companies; auto loan companies, who work with bad credit borrowers buying a car; online lenders; and no credit check lenders. The type of provider that’s best for you will depend on how much you want to borrow, for how long, and how much you can afford to pay in interest and fees.
A bad credit loan can be used for many varied purposes; most commonly they are used to help consolidate debt or patch short term cash flow issues. They’re also useful for covering unexpected bills and emergencies, paying for monthly bills, funding a needed purchase (such as a car or tuition fees), and helping to repair your credit. There are no restrictions on what you can use this type of personal loan for in Alberta.
Absolutely! There are plenty of online lenders (and lenders with online platforms) available for Calgary residents to choose from. These lenders offer the convenience of applying for your loan from home, and often have fast turnaround times. It’s also helpful that you can usually look into their terms and conditions in some detail on their websites.
Taking out a loan of any kind has an immediate effect on your credit score, usually lowering it slightly to reflect your higher debt burden. However, as with any other type of loan, there will only be a long term negative effect if you fail to pay back the loan as agreed. But if you make your loan payments on time and in full, you will actually help to improve your credit over time – by establishing a history of reliable repayment.
A no credit check loan is exactly what it sounds like – a loan that does not require a credit check. This is a great option for anyone with a low credit score. The average credit score in Calgary is 650, but there are plenty of locals with scores less than this, and for anyone falling under the 600 threshold, a traditional personal loan is probably not an option. So if your score is lower than average, you can either go to a bad credit provider, or a no credit check provider. Both of these options will have other qualification criteria though, and will charge higher interest rates to offset their increased risk.
Payday loans are very popular in Calgary, and borrowers seeking quick cash often turn to this accessible option. However, payday loans have high interest rates, which quickly compound if the loan is not paid back within a few weeks. So for anyone seeking a loan of more than a few hundred dollars, or for longer than a few weeks, there are more affordable options.