Car Loans Edmonton, Alberta

📅 Last Updated: October 5, 2023

✏️ Written By Bryan Daly

🕵️ Fact-Checked by Caitlin Wood

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Loans Canada

Amount: Up to $50,000
Rate: Prime to 46.96%
Term: 3-60 months

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Fora

Amount: $1,000 - $10,000
Rate: 19.69% - 46.9%
Term: Varies

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Spring Financial

Amount: Up to $35,000
Rate: 9.99% - 46.96%
Term: 6 - 60 Months

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Fairstone Financial

Amount: Up to $50,000
Rate: 19.99% - 39.99%
Term: 6 - 120

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Cash Money

Amount: $1,500 – $10,000
Rate: Varies by province
Term: Varies

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Mogo Finance

Amount: Up to $3,500
Rate: 9.9% - 47.72%
Term: -

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easyfinancial

Amount: $500 - $100,000
Rate: 9.99% - 46.96%
Term: Varies

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LoanMeNow

Amount: $500 - $1000+
Rate: 28% to 32%
Term: 3 Months

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Nyble

Amount: $150
Rate: No Cost!
Term: -

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Bree

Amount: Up to $250
Rate: No Cost!
Term: -

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goPeer

Amount: $1,000 - $25,000
Rate: 7.5% - 31.5%
Term: 36 - 60 months

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Types Of Loans In Edmonton

As an Edmonton resident, you can apply for all sorts of loans for different purposes, like personal loans, car loans, and mortgages. These loans can fall under two categories:

Secured Loans In Edmonton

Common with larger loans, like car loans and mortgages, a secured loan is when you offer your lender collateral to reduce the risk for them. Collateral refers to an asset they can sell, in case you default on your loan. For example, most car loans are secured against the vehicle you’re purchasing, which means the lender can repossess it if you don’t pay them back in full.

Despite the danger of losing your asset following default, collateral can help you qualify for a larger loan with a better rate and term since you’re offering the lender security.

Unsecured Loans In Edmonton

When you apply for a personal loan, they’re generally unsecured, unless you offer an asset of value as collateral. These loans typically come with higher rates instead, due to the lack of security.

On the other hand, you won’t endanger any assets. If you miss payments, you’ll be subject to regular penalties like late fees, added interest and, eventually, debt collection and legal fines.

Steps On How To Apply For A Loan In Edmonton

Although the approval process and requirements can vary by lender and the type of loan you need, here are some of the basic steps you should take when applying for a loan in Edmonton:

Step 1. Compare Lenders And Choose One To Apply With

Every lender has different costs and conditions, so take some time to research the interest rates, payment plans and legitimacy of a variety of companies. Banks and credit unions tend to offer more security and lower rates, while alternative lenders typically have easier requirements.

Step 2. Fill Out An Application And Provide Documents

Once you’ve chosen a trustworthy and affordable lender, head to their application page and follow the instructions. Most of the time, the process is relatively simple and quick. During it, you’ll have to provide some personal, financial and banking information, such as your:

Full Name
Date of Birth
Home Address
Contact Information
Proof of income and employment
Chequing Account, Institution and Routing Numbers

General Minimum Requirements

To apply for a loan anywhere in Canada (including Edmonton), you must:

Be past the age of majority in your province or territory (18+ in Alberta)
Be a Canadian citizen or permanent resident with a valid address
Pass the lenders minimum income and credit requirements

Step 3. Submit Your Application And Wait For A Loan Offer

Once you send in your loan application, the response time depends on your lender. Some companies can take one or two business days to get back to you (especially if you apply on a weekend or holiday), while others can do it in the same hour. After you receive confirmation, make sure to read the loan contract carefully before you officially accept it.

Step 4. Accept The Offer And Receive Your Funds

If you’re satisfied with the loan, simply sign the contract and wait for your funds. Arrival times vary based on the lender and the size of your loan. Larger loans can take several days to go through, while some lenders can process your loan almost immediately. Depending on where you apply, you may have a number of options to collect your funds, including:

Direct Deposit
Interac e-Transfer
Cash or Cheque

Documents Required To Apply For A Loan In Edmonton

To prove that you have a valid identity, address, income, and bank account when you apply for a loan in Edmonton, you may need to provide copies of these documents:

Personal Identification – Lenders will ask for at least one piece of government photo ID (passport, driver’s license, health insurance card, etc.). They may also request other documents that contain your identity and address, such as a:

Birth Certificate
Certificate of Citizenship
Social Insurance Number (SIN)
Recent utility bill

Income/Employment – Next, lenders will look at your recent pay stubs, bank statements and tax returns. If you don’t have a regular job, then you’ll need an adequate non-traditional income, like from self-employment or social assistance. Keep in mind that some lenders will deny applicants who aren’t fully employed.

Additional Documents For A Car Loan – Car loans are risky for most lenders. Plus, a car loan is usually secured against the vehicle you’re trying to finance. To apply and qualify, you may have to provide the documents above, as well as:

Your driver’s history
Your car insurance policy
A recent mortgage or rent statement
A down payment or cosigner

Additional Documents For A Mortgage – If you’re applying for a mortgage in Edmonton, you must be extra prepared with all the right personal and financial documents. Since mortgages are the riskiest and most expensive loans of all, you may have to provide more specific documents and forms of protection, like:

Your largest recurring expenses (credit card bills, living costs, etc.)
Information about all your other assets and liabilities
Statements from all your incomes (government benefits, etc.)
A larger down payment and/or stronger cosigner

Can You Get A Loan In Edmonton With No Bank Verification?

In Canada, most lenders will want you to have an active bank account before they can offer you a loan. This is simply an easier way to verify your income, deposit your loan and collect your payments down the line. However, some lenders, particularly payday lenders in Edmonton, don’t require bank verification, as long as you have a way to receive and pay off your loan.

Can You Get A Loan In Edmonton With No Credit Refusal?

If you need a fast, short-term loan, many lenders offer loans that you can collect in less than 24 hours, with “no credit refusal”, meaning no credit check. This can help you avoid getting rejected due to a bad credit score or weak credit history. Just watch out, since no credit refusal loans are a common tactic used by scammers and predatory lenders.

Can You Get A Loan In Edmonton With Instant Approval?

While an instant approval loan is not possible, you can get a loan the same day you apply, given that you apply early in the day. With these loans, you’ll have fast access to liquid cash and the ability to cover any emergency costs that come your way.

Before you apply, remember that loans with fast approval loans can be smaller and have higher rates or shorter terms.

How To Calculate The Cost Of A Edmonton Loan

APR	Monthly Payment	Total Interest	Total Cost
10%	$87.92	$54.99	$1,054.99
20%	$92.63	$111.61	$1,111.61
30%	$97.49	$169.85	$1,169.85
40%	$102.47	$229.66	$1,229.66

*$1,000 personal loan with a 1-year term.

How To Increase Your Chances Of Getting A Loan In Edmonton?

There are several things that you can and should do before applying for a loan in Edmonton to increase your chances of approval:

Review your credit report/credit score. Reviewing your credit will give you an idea of your financial standing and help you decide if you’re ready to take on a loan. Moreover, Even if your credit score isn’t an important factor to your lender, checking your credit is a good way for you to determine your own financial standing.
Research lenders properly. There are many lenders in Edmonton that offer various credit products. However, there are also many illegitimate ones that will try to scam you, so prior research should be a priority.
Apply with an online lender. Dealing with a lender online might be more convenient for you as they often have lower requirements
Organize all your financial documents. Missing documents and inaccurate information can not only delay your loan application but lead to rejection. Be sure to have all your documents organized to ensure a smooth application process.
Pay off your other debts first. If you owe money in other places, like credit card companies, it’s best to deal with those debts before you apply. Lower debt-to-income ratios make you a less risky borrower.
Get a secured loan – A secured loan involves an asset that can be used as collateral if you fail to make payments, such as a house, car, business, or piece of land. Offering collateral will not only increase your chance of qualifying for a loan but lead to lower interest rates.

Tips On Applying For A Loan In Edmonton

Understand The Costs – While you might be in good financial health right now, loan payments might cause you a lot of stress further down the line. Always make sure you can afford the payments before signing any contracts.
Compare Lenders – It’s important to find a lender who will suit your financial needs. Make sure they give you the best possible interest rates and repayment terms.
Watch Out For Payday Loans – Be very careful when it comes to payday loans. While they may help cover smaller expenses, they might land you in a cycle of revolving debt due to accumulating interest charges.
Watch Out For Scammers – It’s important to be very cautious when it comes to choosing a lender. There are many organizations that are illegitimate and are out to steal your money. Always do research. Look at customer reviews and check for your lender in the Better Business Bureau database to see that they are reputable.

Can Your Loan Affect Your Credit Scores?

Not everyone realizes that their credit scores can be affected in various ways during the loan payment process. For instance:

Payments that are made on time and in their full, designated amounts will raise your credit score and improve your credit.
Payments that are missed completely made late or in smaller amounts than were agreed upon will result in your score dropping and damaging your credit.
Responsible use of a loan is a great way of building your credit, which is why it’s important to find a lender that reports to Canada’s main credit bureaus, Equifax and TransUnion.

Additional Reading

Can You Take Out Two Or More Personal Loans At The Same Time?

Large Unsecured Personal Loans With Good Credit Canada

CRA Tax Loans

Loans In Edmonton FAQs

Can I get a loan in Edmonton with bad credit?

If you don’t have a high credit score before you apply for a loan in Edmonton, you won’t necessarily be rejected. Actually, many lenders in Edmonton won’t even check your credit score before they approve you. As long as you’re in solid financial health, there are lenders who will let you borrow from them.

Should I use my credit card or loan?

It depends on what you want to finance. Highly expensive things like homes can take years to pay, so a loan will most likely be the better choice. Smaller purchases, such as food, gifts, and clothing can usually be financed with your credit card.

Will a lender still approve my application if I have no credit history?

Don’t worry, a credit history is just a way of recording your credit product usage. While a good credit history is definitely not a bad thing, you don’t necessarily need one to receive approval.

How many days will it take to receive my loan after approval?

Once you’ve found a legitimate lender in Edmonton and filled out your application correctly, it can take around 24-hours to a few business days to get your loan.