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Payday loan services are popular in Edmonton, as a convenient and easy means to access quick funds. However, before you start the payday loan application process, take time to consider exactly how they work, and the other personal loans available to you. Payday loans in Edmonton are usually not the cheapest option, and may not be the best solution for your financial situation.
To help you understand the different forms of short term financial assistance available in Edmonton, here we’re going to take an in-depth look at payday loans, including online payday loans, as well as some alternatives that can provide emergency funds in just a few minutes.
To get you started, we have curated a list of reputable lenders that provide various types of cash loans, as well as the best payday loans. Take a look at the table below to find both online services and details of companies that have offices in Edmonton.
Click on a lender to see their full profile, available loan amount, and to find their online loan application. You can verify it is a trusted lender by checking out their customer reviews. And you can also apply right here with Smarter Loans, and we will connect you to the lender that best suits your needs.
We can help connect you with the top loan providers in Edmonton.
Chart showing payday loans by size in Alberta over time.
A payday loan is an unsecured, short term loan available to retail consumers, and it works just like most other cash loans. You complete an application process, and if approved, you receive a sum of money. You may use this money as you wish.
You then have to repay the loan, plus interest and fees, according to the repayment plan in the loan agreement. Most of these loans must be repaid when the borrower receives his/her next payday.
Graph showing number of payday loans in Alberta over time.
Getting instant payday loans in Edmonton is simple, as the eligibility requirements are lenient. Applicants must:
And that’s it! No credit check is required; neither is any form of collateral. As long as you can show the above, you are likely to receive approval.
Their minimal eligibility requirements and instant approval process are a big part of why these loans are so popular for dealing with unexpected expenses and emergencies.
Graphic indicating that your credit score does not matter.
Unlike with bank loans and some other types of cash loans, a credit check is not necessary when you apply for payday loans; the only really important factor is income. And the income accepted can be any form of steady income. This means payday loans are a great option for those with bad credit, or who wish to avoid a credit check for any reason. Even Alberta residents with past bankruptcies can access this type of loan.
It’s important to realize though that payday loans are not suitable as a means to rebuild your credit. This is because most lenders do not report payments to credit bureaus, so positive payment will not be taken into account in your credit history.
Chart showing number of payday loans defaulted on in Alberta.
Table showing regulation variations by province.
Edmonton residents enjoy some of Canada’s lowest loan rates. This is because the maximum allowable cost is not controlled by lenders, but by the provincial government.
This maximum cost is set to $15 per $100 borrowed. The cost is expressed in this way rather than as an interest rate because most payday loans are intended to be repaid in one lump sum from your next paycheck, so their cost is advertised as a ‘flat fee’.
However, you should know that this is the cost only if you pay back the cash on time, and does not account for other fees or interest that will increase if you fail to repay.
It’s also worth noting that even with this cost cap, payday loans in Edmonton are still significantly more expensive than other online loans and short term loans. Even if you have a poor credit score, there is financial support available that can provide quick access to urgent funds. Research by the Government of Canada found that 57% of people who get these loans were aware of their high costs versus their alternatives.
Graphic showing Alberta residents’ opinions on cost of payday
Chart showing distribution of payday loan market. Most people still choose to borrow money in person rather than get an online payday loan.
Online payday loans in Edmonton are essentially the same instruments as those obtained at a payday loan store. And because so many people want convenience, the majority of lenders are now offering online payday loans; once you submit your online payday loan application, you can receive an almost instant loan decision, and if approved have funds deposited directly into your bank account or sent via Interac e-transfer on the same business day.
So online payday loans are extremely accessible and those in the Edmonton area can get cash loans fast, without having to go anywhere. But physical locations for most instant cash lenders are present throughout Edmonton as well, with most open outside of regular business hours for convenience.
The security of your personal information online will depend more on your personal setup than the loan provider’s security; any reputable online lender in Canada will have bank level encryption. You should verify the trustworthiness of a lender before you apply for an online payday loan.
Chart showing payday loan uses. The majority of users want money to cover unexpected payments.
Due to their structure, cash loans offering fast approval are best suited to provide funds for financial support in times of emergency. Their size and interest rate makes them less suitable for long-term borrowing or large amounts of money.
This doesn’t mean those accessing them are restricted in how they can use their funds; on the contrary, payday loans in Edmonton can be used for any purpose, including:
Chart showing average value of loans in Alberta, over time.
Chart showing the cost of borrowing for different loan types. Getting approved for a payday loan is one reason they are so popular despite their expense.
A major reason many turn to payday loans in Edmonton is that they are unable to access quick cash by any other means; 65% of these borrowers in Canada do not have access to a credit card. If you combine this issue with the prevalence of bad credit, it’s easy to see why payday loans are so popular.
But given their cost, it’s worthwhile considering if any of the other loans in Edmonton that are available may better suit your financial situation; for example, bad credit borrowers can access other types of short term loan. Or, if time is of the essence, other lenders have hassle free online application processes and quick approvals that allow many borrowers to access cash fast – some even providing direct deposit or e-transfer of borrowed funds within a day.
As loans in Edmonton, of all types, have become more popular, and online lending has surged, pretty much any type of loan you can think of is available online, and lenders of all kinds have multiple options that make getting a loan much easier than you might think.
Chart showing reasons people get a payday loan. People like payday loans as it is easier to get approved than when applying to other financial institutions.
Here are some of the best alternatives to payday loans in Edmonton, that can help you with your financial worries, without suffering punitive interest rates:
Credit Card Cash Advance
This is structured as a line of credit, dependent on the unused credit limit on the borrower’s credit card. This is provided directly by the credit card company (not the issuer), and receives the same type of treatment as any other purchase made with a credit card.
In some cases, credit card companies charge higher interest rates on cash advances than on ordinary credit purchases, so it is important for the borrower to understand the rate differential.
Bad Credit Loans
It’s a myth that you need a high credit score to persecure a personal loan. Those who can’t get approval for traditional lenders’ credit check loans can still gain access to cash loans – most usually from bad credit lenders who specialize in products geared towards those with less-than-perfect credit.
You may have to pay more in interest for a bad credit loan than you would for a traditional personal loan, but it still may be cheaper overall than Edmonton payday loans online.
Secured Loans
Another option if you’re worried about credit checks is a secured loan. It is easier for those with bad credit to access secured loans than unsecured loans. By providing collateral against a short term loan, you can reduce the risk to the lender, and so access more money and better rates.
Short Term Personal Loans
If you have reasonable credit, short term personal loans in Edmonton will have much better interest rates and more flexible terms than any other quick loans. Many lenders offer these instruments online, with fast application processes and funds available via deposit into your bank account or e-transfer. In this way these loans can be as convenient as payday loans in Edmonton, while still allowing you to access cash fast.
Savings
Research has shown that even those with high income and savings turn to fast cash loans in Edmonton to get extra cash in times of need. This is believed to be an education issue; people would rather keep savings accounts ring-fenced, and take on new debt, than dip into rainy day funds.
However the math on this does not add up, as a third loan costs more than using savings, and can potentially affect your credit rating and overall financial health too.
Chart showing total value of loans and total cost of credit in Alberta.
Lenders in Alberta are regulated and have to comply with specific requirements in order to operate. These requirements state that those who offer payday loans in Edmonton – including those who offer online payday loans – must:
Chart showing number of repeat loan users in Alberta.
In addition, loans issued to Edmonton residents must follow the below rules:
Chart showing that some illegal behaviour still occurs.
Home to nearly a million people, Edmonton has an active loans market and plenty of options for payday loans. This includes companies such as Cash Money, Focus Cash Loans, Loan Express, GoDay, iCash Loans, Speedy Cash, EasyFinancial, CashCo, and many more.
Some of these companies have physical locations to apply and collect your loan from, while many others let you apply online to make the entire process more convenient. Bear in mind though that you may have access to more customer service in person.
Yes! Many cash loan providers allow you to apply online, offer an instant decision, and then send your full loan amount via direct deposit. You can complete the entire process and receive an instant loan on the same business day. Many of these companies also offer friendly customer service to help Alberta residents access speedy cash.
Yes, payday loans are legal in Edmonton. Across Alberta, the rules for payday loans (as set by the provincial government) state that the cooling off period for all payday loans is 2 business days, the maximum cost of borrowing is $15 per $100, and the maximum penalty for a returned cheque or pre-authorized debit is $25.
Together this makes Alberta one of the cheapest places in Canada to access speedy cash. There are also restrictions in place to stop payday lenders from rolling over your loan, garnishing wages, or harassing you for payment.
No. Payday loans are sometimes known as no credit check loans, for the simple reason that a credit check is not required. This is especially useful to Edmonton residents with bad credit; the average credit score in Edmonton Alberta is 625 – lower than the national average of 650.
All payday loans in Edmonton require proof of income, but this can come in many forms, including: employment income; child tax credit income or child tax benefit; private pension workers compensation; private pension income; private disability income or other non-government disability benefits; predictable binvestment income; employment insurance income; workplace insurance income; and other forms of repeatable, predictable income. Remember, it’s your net income that matters, not the gross amount.
Payday loans have among the highest interest rates of any loans in Canada. This is because of their short term nature, and the fact that you do not need a credit check to get one.
The maximum you can be charged for a payday loan in Edmonton is $15 per $100 borrowed. But don’t forget about potential loan fees, including hidden fees, and that the interest quickly compounds if the loan is not paid back on time. Overall this can mean that the effective annual interest rate on a payday loan is over 500%. Don’t be fooled – instant loans come with a hefty price tag!
Payday loans are best used as a short term emergency loan, and because they do not require a credit check and are designed as a stopgap solution between paychecks, they only come in small amounts – up to $1,500. If you need a larger loan amount, you’ll need to look at other types of instant loans.
To apply for a payday loan in Edmonton, you must be able to show some basic personal details, including:
Very fast. Most lenders (whether you apply online or in person) will provide an almost instantaneous turnaround time. This means you can apply online in just a few clicks, receive instant approval, and get your funds into your bank account in just moments. The entire process can take as little as a few minutes.
Their speed is one of the primary attractions of payday loans, as they allow those experiencing a financial emergency an almost immediate solution.
Amy Orr is a professional writer and editor with over 10 years of experience in the Canadian, U.S. and U.K. financial markets. She has written for numerous publications on topics as diverse as economic literacy, corporate finance, and technical analysis of numerical data. Prior to transitioning to full-time writing, she worked in the hedge fund sector. Her academic background is astrophysics, and she has a Masters in Finance from the University of Edinburgh Business School.
Jenna West is Smarter Loans' in-house financial writer and content director. She has been covering the Canadian FinTech and finance industry since 2017, including financial trends analysis, industry surveys, regulatory updates and changes in Canadian consumer behaviour when it comes to finance.
