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What kinds of personal loans are available in Calgary?
Calgary residents can access loans of many different types, to help with many different financial needs. Among the various personal loans common throughout Calgary are: installment loans, auto loans, payday loans, bad credit loans, lines of credit, debt consolidation loans, and student loans. Research shows that Calgarians typically hold a mix of debt types, carrying on average over $28,800 in credit card debt and consumer loans. This is the highest of any major Canadian city.
Who can get a personal loan in Calgary?
You don’t have to be rich to qualify for a personal loan in Calgary; in fact, any resident over the age of 18 and with an active bank account will be able to access some form of financing. The fundamental requirements for all loans are simply:
- I.D.
- Proof of address
- Bank account information
Once these basic, universal hurdles have been cleared, each lender may have their own, additional requirements, such as:
- Credit score
- Employment income and type
- Existing debt levels
- Collateral
But as no two lenders are exactly the same, which factors they consider and how they weigh them can vary a lot. The good news is that even those with poor credit, who are unemployed, or who already have a high level of debt will be able to find some financing options.Â
How much can I borrow with a personal loan in Calgary?
Amounts of anywhere between $300 and $35,000 are available via Calgary personal loans, although more may be accessible for those with excellent credit, collateral, or high income. The exact amount you will be able to borrow depends on the following factors:
- Your credit score, income, and existing debt levels
- The lender’s algorithms and limits
- The type of loan you apply forÂ
A good rule of thumb is that the most qualified borrowers will be able to borrow more, and more cheaply, than less qualified borrowers.
What credit score do I need to get a personal loan in Calgary?
The average credit score in Calgary is 667 – slightly lower than the national average of 672, but still high enough to pass most lenders’ credit checks. Mainstream and traditional lenders usually have a minimum credit threshold of 650. However, not all personal loans require a credit check, and even some of those that do will approve borrowers with lower credit scores. If your credit is poor, then focus on no-credit-check loans and bad credit loans specifically, as the most likely financing routes for you.
Can I get a personal loan in Calgary if I’m unemployed?
Calgary’s unemployment rate is 7.2% – the highest of any major metropolitan area in Canada (for comparison, Edmonton’s is 6.9%). In addition, 9% of all Calgarians are considered low income. This is despite the median before-tax income in the city increasing over time, and now sitting at $44,440 (incomes are highest on the west side of Calgary).
So what financing options do the hundreds of thousands of Calgary’s residents with low or no income have? Plenty, as it turns out. While employment income is a requirement for many personal loans, the exact level of employment income is less important than your debt-to-income ratio – that is, how much wiggle room you’ll have each month to make your debt repayments. If your income is low but your existing financial requirements are lower, then you’ll still have some ability to make debt repayments, and this is how lenders calculate whether they’re comfortable lending to you, and how much they think you can afford to borrow.
If you have no employment income at all, you still also have options. What matters is that you have regular money coming in from which to make your debt repayments; this can be pension income, investment income, unemployment benefits, ODSP, and so on. Just make sure you check lenders’ income requirements to find one that you can work with.
What can a personal loan in Calgary be used for?
69% of Albertans say that the rising cost of living is their primary concern, and 32% are already insolvent; so it’s no surprise that many use personal loans for day-to-day expenses, such as grocery bills and utilities, as well as for larger one-off expenses, such as healthcare costs and car repairs.Â
The good news is that there are very few restrictions on how personal loan funds can be used, unless you opt for a targeted loan such as a car loan. On average, targeted loans have lower interest rates than standard personal loans (often because they are secured), so these are worth considering if you need cash for a specific purpose. 69% of Albertans state that high interest rates are having a negative impact on their household finances.
Written by:
Amy Orr
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.
Reviewed by:
Jenna West
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.
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