Alberta has many physical payday loan businesses, especially in its largest cities, like Edmonton and Calgary. However, many payday lenders are available online. They offer borrowers an easy and fast way to apply and get a loan without having to leave their homes. Moreover, many online payday lenders offer same-day funding by e-Transfer.
Payday loans in Alberta are usually available for small loan amounts up to $1,500, with short loan terms up to 62 days.
Payday Loans: What To Know
Before you apply for a payday loan in Alberta, be sure to get familiar with its features:
| Payday Loan Amount | Up to $1,500 |
| Loan Term | Up to 62 days |
| Interest | $14 per $100 borrowed |
| Beware: Payday loans may be easy to get, but they come at a very high cost. Payday loans have extremely high interest rates that can be as high as 365% APR. |
What Are The Requirements For A Payday Loan In Alberta?
To be eligible for a payday loan in Alberta, you must be a Canadian resident or citizen and past the age of majority (18+). During the application process, you’ll also usually have to provide:
- One or more pieces of government photo ID (passport, driver’s license, etc.)
- A payslip or other proof that you’ve had a job for a minimum of 3 months
- A utility bill or other document that displays your permanent Canadian address
- A bank statement or other proof that you have an active chequing account
Can You Get A Payday Loan With Bad Credit?
Unlike a personal loan, payday lenders do not require credit checks. That means you can qualify for a payday loan with bad credit. That said, it’s best to build your credit as it can impact your ability to qualify for other credit products. Moreover, it can affect the interest rate you qualify for, which can have a major impact on the cost of your loan.
You can keep tabs on your credit using a number of different credit score platforms for free, including Compare Hub.
Can You Get A Payday Loan In Alberta On EI?
Employment Insurance is a federal program that gives Canadians temporary income following unemployment (without fault). When that happens, some banks will deny your credit applications because approving a client without a traditional full-time job is risky.
However, payday lenders simply want to know that you can pay back your loan on time, no matter what happens, so many will approve you while you’re collecting EI or other government benefits. Just make sure to provide proof of your EI payments when you apply for a payday loan in Alberta.
Licensed Payday Lenders In Alberta: Find A Payday Lender Near You
Many payday lenders are available in Alberta. However, not all of them are licensed.
In Alberta, payday lenders must be licensed to practice under the Alberta Payday Loans Regulation, so it’s essential that you work only with payday lenders who have the appropriate licensing in the province.
You can find out if a payday lender is licensed by looking for a license number on their storefront or website, by searching the Government of Alberta’s website, or by calling the Consumer Contact Centre at 1-877-427-4088.
Are There Brick And Mortar Payday Lenders In Alberta?
Many payday lenders are available online, making the application and funding process much more convenient. However, if you’re looking to apply for a payday loan in person, several brick and mortar lenders are available across the province.
To help you start your search, here is a list of some licensed payday lenders in Alberta:
- GoDay – 421 7 Ave SW, Suite# 1600, Calgary, AB, T2P 4K9
- Mr. Payday Easy Loans – 3300 TD Canada Trust Tower, 421 7 Avenue SW, Calgary, AB, T2P 4K9
- Blue Copper Capital – 5809 Macleod Trail SW, Unit# 104, Calgary, AB, T2H 0J9
- Cash Cowboy – 10060 Jasper Ave, Unit# 2020, Tower 1, Edmonton, AB, T5J 3R8
- Money Mart – 3545 32 Ave NE, Unit# 323, Calgary AB, T1Y 6M6
Ready To Apply For A Payday Loan? Follow These Steps
If you’ve decided that a payday loan is suitable for you, follow these steps to apply:
Step 1: Compare Your Options
Not all payday lenders are the same. Some may offer higher loan amounts, while others might accept alternative income sources, like government benefits or pension payments. Before applying, take some time to compare lenders to find one that suits your financial situation.
You can quickly and easily compare lenders and their loan offers through loan comparison platforms like Loans Canada. You can use this tool to get pre-approved or view several quotes side by side.
Step 2: Submit Your Application
Once you’ve decided on a lender, complete their application, either online or in person. The quickest and easiest way to apply for a payday loan is online, though many lenders operate in physical locations.
To apply, you’ll need to complete a short application form with your personal and financial information. Then, the lender will verify the information you’ve provided, along with the supporting documentation.
Step 3: Receive Your Funds
After submitting your application, you could get a decision in as little as a few hours, or up to 24 hours, depending on the lender. If you’re approved, you’ll be sent a loan agreement to review and sign. Then, your funds will be sent to you, typically via e-Transfer or direct deposit, often within minutes following approval.
| Instant Bank Verification (IBV) Many lenders use instant bank verification, which involves connecting your banking information to allow the lender to temporarily access your transaction history. This helps them quickly and securely confirm your income and identity. |
Your Rights As A Payday Loan Borrower In Alberta
Consumers in Alberta have certain rights when it comes to how they are treated by the businesses they deal with. This includes payday lenders and loans. In Alberta, consumers are protected under the Consumer Protection Act and Payday Loans Regulation.
In Alberta, payday lenders are required to adhere to the following:
| Payday Loan Amount | $1,500 or less |
| Loan Term | – Up to 42 – 62 days |
| Interest | No more than $14 per $100 borrowed (including all fees and loan charges) |
| Default Consequences | – Lenders may charge additional fees if the loan is not paid on time – No more than $20 may be charged on a dishonoured cheque or pre-authorized debit |
| Cooling-Off Period | 2 days |
| Rollover? | No |
Learn more: Payday Loans: Know Your Rights
How To File A Complaint Against A Lender In Alberta
As mentioned, payday lenders in Alberta have rules to follow. If you feel that your lender has treated you unfairly, you can file a complaint through the Service Alberta and Red Tape Reduction Contact Centre:
- By telephone: 1-877-427-4088 or 780-427-4088
- By email: cs@gov.ab.ca
Office hours are 8:15 am to 4:30 pm, Monday to Friday.
How Much Do Payday Loans Cost In Alberta?
Payday lenders in Alberta cannot charge any more than $14 per $100 borrowed. This includes all fees and charges involved with the loan.
To illustrate how much you might pay for a payday loan in Alberta, here are a few examples of different loan amounts and their respective charges:
| Loan Amount | Cost To Borrow | Total Cost Of The Loan |
| $100 | $14 | $114 |
| $200 | $28 | $228 |
| $300 | $42 | $342 |
| $400 | $56 | $456 |
| $500 | $70 | $570 |
| $1,000 | $140 | $1,140 |
| $1,500 | $210 | $1,710 |
What Happens If You Don’t Pay Back A Payday Loan In Alberta?
When you take out a payday loan, you’ll need to repay the full loan amount — plus interest and fees — by the time you get your next paycheque. If you miss the payment deadline, you’ll likely face certain consequences, such as the following:
- Extra fees: Payday lenders in Alberta may charge you up to $25 for a dishonoured cheque or pre-authorized debit. Your bank may also charge you a Non-Sufficient Funds (NSF) fee if you don’t have enough cash in your bank account to cover your payday loan repayment.
- Legal action: Payday lenders in Alberta can sue you if you don’t pay them back by the agreed-upon payment due date.
- Collections: Payday lenders may sell your loan account to a collection agency to recoup the money you owe. This may be noted on your credit report and can pull your credit score down.
It should be noted that payday lenders in Alberta are only allowed to attempt to process your pre-authorized debit one more time if you default on a payment, and not any further.
What To Watch Out For When Taking Out A Payday Loan
Payday loans may seem like a quick fix during a financial crunch, but they come with potential risks. Here are a few things to watch out for:
Debt Cycle
Payday loans are very expensive and have short repayment terms that can lead to long-term debt. If you’re unable to repay on time, lenders may tack on late fees, NSF charges, and additional interest, which can quickly cause your debt to spike.
If the loan goes unpaid, lenders may report you to collections, which can damage your credit score. Make sure you read the fine print and understand the total cost of borrowing before applying.
Loan Scams
Fraudsters may pose as legitimate lenders in the payday lending sphere. They may promise guaranteed loan approval or demand upfront fees. Legitimate lenders won’t ask for payment before disbursing funds or threaten legal action with no backing.
Always verify the lender’s credentials and ensure they have a legitimate website or physical address. Avoid offers that seem too good to be true.
Is A Payday Loan Right For You?
As mentioned, payday loans should be considered as a last resort because of how expensive they are and how difficult they can be to repay in such a short window. However, there may be times when a payday loan might make sense:
- You Have A Short-Term Emergency: Payday loans may be an option if you need a small amount of cash very quickly to cover a pressing expense. In this case, a payday loan may offer fast relief.
- You’re Confident You Can Repay It On Time: Payday loans should only be considered if you’re sure you can repay the full amount by your next payday.
- The Lender Is Licensed And Trustworthy: Only borrow from a licensed payday lender that is fully transparent about fees and repayment terms.
Payday Loan Alternatives In Alberta
A payday loan might get you out of an urgent financial predicament, but it’s only a short-term solution, and a very expensive one at that. Rather than take out a payday loan to deal with your financial issues, there may be other options that are stable for your situation:
Interest-Free Loans
Aside from payday loans, there are other ways to get access to cash right away. If you need a quick cash fix and don’t want to be subject to sky-high interest rates, consider one of these options:
- Bree: Bree offers small cash advances that you can use to cover an expense before your next paycheque comes in. Cash advances are available for up to $500, and funds are accessible within minutes. No credit check, interest, or late fees apply.
- Nyble: Nyble offers small, interest-free lines of credit. Not only can you borrow small amounts of money quickly to cover an expense, but you can also use your credit line to build good credit with timely payments.
- MoneyUp: MoneyUp lets you access your wages early before payday. It’s a great alternative to high-interest loans when unexpected expenses creep up.
- KOHO Cover: KOHO Cover provides short-term cash advances for a small monthly fee. It also comes with useful budgeting features to help you keep your spending in check.
Government-Backed Programs
Financial assistance programs are offered in Alberta for residents experiencing financial difficulties:
| Financial Resource | Link |
| Alberta Family Support For Children With Disabilities (FSCD) Program | Learn More |
| Alberta Aids To Daily Living (AADL) | Learn More |
| Alberta Seniors Benefit | Learn More |
| Assured Income For The Severely Handicapped (AISH) | Learn More |
| Alberta Child And Family Benefit (ACFB) | Learn More |
| Social Assistance In Alberta | Learn More |
Looking For Long-Term Financial Help? Debt Relief Programs May An Option
If you’re struggling with ongoing debt, a payday loan isn’t the answer, as it only covers short-term emergencies. Instead, it may be best to speak with a credit counsellor to look into more long-term solutions to help you with your debt issues.
| Debt Management Program (DMP) | This arrangement allows you to combine multiple high-interest debts into one lower-interest monthly payment, which is typically paid off over up to 5 years. This can help you save money and simplify your finances. |
| Consumer Proposal | With the help of a Licensed Insolvency Trustee (LIT), a consumer proposal lets you pay a portion of your debt or extend your repayment term. If your proposal is accepted by creditors, you’ll have up to 5 years to settle your debts under legal protection. |
| Bankruptcy | As a last resort, you may consider bankruptcy, which provides relief from most unsecured debts. This legal process stops collection actions from creditors and discharges eligible debts, though it typically involves surrendering many assets and damaging your credit score. |
Bottom Line
Payday loans may offer quick relief, especially if you only need a small amount of money and have bad credit. However, they often come at a steep cost. Before borrowing, it’s important to understand the risks, fees, and potential for long-term debt that may come with payday loans in Alberta. Exploring safer alternatives and seeking financial guidance should be your first step.
