The Easiest Loan To Get With Bad Credit in Alberta

The easiest type of Alberta bad credit loan to get with a bad credit score would be a secured loan. This is because the lender requires collateral in order to approve the loan. Because there’s collateral, they also offer lower interest rates than unsecured loans. If you’re not looking for a secured loan, though, then it’s a good idea to go with an online lender to get the funds you need. No matter which type of loan you look for though, the loan amounts range from $500 to $50,000.

How to Find Bad Credit Loans in Alberta

There are lots of reputable companies from which to choose for a bad credit loan in Alberta. Many of these companies are considered alternative lenders and allow you to get the loan completely online from the comfort of your home. Here is a list of commonly used lenders for bad credit applicants in Alberta. When looking at the lowest interest rates offered below 10-16% and loan amounts above $15,000, they will most likely require collateral.

• Spring Financial
  • We offer multiple different credit products ranging from 9.99%-46.96%. They provide loans up to $35,000 with flexible terms. Our loans are 100% open and report to both Transunion and Equifax to also help your credit score. We also provide a free credit score report online. Learn more here.
• LoansConnect
  • LoansConnect has an interest rate of 5.75%-46.96%. The loan amount that they give ranges from $500-$50,000. The loan term can be anywhere from 6-60 months.
• Loans Canada
  • This is a very popular destination for loans in Alberta. The interest rate ranges from 1.99%-46.96%. Their loan range is also from $500-$50,000, and their loan term ranges from 4-60 months.
• Mogo Finance
  • The interest rate is 9.9-47.42%. They offer loans from $500-$35,000. Their term is 9-60 months.
• Fairstone
  • Unsecured loans up to $25,000. The interest rate is 26.99-39.99%. The term is 6-60 months. Fairstone, at times, will have stipulations with their loans that will see some of your loans used to pay off any collections items you have on your credit file, and then they will send you the difference.
• easy financial
  • Unsecured personal loans from $500-$50,000. To get approved, you’ll need an income of at least $1,200 and a steady source of employment with direct deposit to your bank. The term is 9-60 months, and the interest rate is 19.99-46.96%.
• FlexMoney
  • They offer loan amounts of $500-$15,000 and a term of 6-60 months. Their interest rate starts at 18.9%.

Since these companies are online lenders, you can complete an online loan application and receive a loan approval quickly. They are different from traditional lenders and payday loan companies since the process for online personal loans is done online, and they offer bad credit loans as well as good credit loans. 

Some popular payday lenders in Canada include:

• MoneyMart
• Cash Money
• Captain Cash
• National Payday Loans
• iCASH
• Go Day
• My Canada Payday

With most payday lenders, you can get short-term personal loans as well as payday loans. These online loans differ from traditional loans, but they should be used carefully. The interest rates are much higher, which is why many refer to payday lenders as predatory lenders.

How to Get a Loan With Bad Credit

If you have bad credit, you will not be able to go the traditional route for a loan straight through the bank that you use. Your personal bank will likely only provide loans to individuals with credit scores over 700-720. Instead, you will need to search for a reputable lender that specializes specifically in bad credit loans. This will be your best bet towards obtaining the loan that you need.

To ensure you’re able to obtain your bad credit loan, you can have a few extra things that will make your chances go up:

• Have a decent, stable source of income and can make a monthly payment.
• Consider getting someone who has better credit to be your co-signer.
• Secure your loan using qualifying collateral.
• Adjust your debt-to-income ratio. A debt-to-income ratio lower than 36% is ideal for most lenders.
• Put down a down payment on the loan.

The Credit Score Needed to Get an Alberta Bad Credit Loan

The ideal credit score to borrow money in Alberta is anything above 700-720. This will ensure you get the lowest interest rates, and you’ll be able to borrow much more compared to someone with a lower score.

However, you can borrow money with a low credit score of 300 from some lenders. Of course, the closer your score is to a “good” level, the better because this will make you look more reputable in the eyes of the lender. If you have a score above 500, you’re very likely to be able to obtain a bad credit loan in Alberta with no minimum credit score requirements. 

Some loans do not even look at your credit score and will only take into account other factors on your credit report like your debt-to-income ratio, your employment status, your wages, whether or not you have a Canadian bank account or the amount of collateral you can offer up. These can be ideal for approval for bad credit borrowers but are much more expensive in the long run. Before you sign a loan agreement, it’s important to compare lenders and find the best loan for you.