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Finding a personal loan in Alberta can be difficult when you have bad credit. Lenders in Alberta often use credit scores to determine creditworthiness and if your credit score isn’t up to par, you’ll likely be rejected. Banks in Alberta particularly require good to excellent credit scores, but many online lenders in Alberta are willing to lend to those with subprime credit.
If you struggle with bad credit, you can get a personal loan with one of these bad credit personal loan lenders in Alberta. Moreover, many of these online lenders offer affordable rates, simple applications and fast funding.
Steps To Get Personal Loans In Alberta
Getting a personal loan in Alberta can be difficult if you have low credit or poor finances. However, that doesn’t mean you should accept the first offer you get. Follow these steps to get the right loan for you.
Step 1: Get Pre-Approved
Before applying for a personal loan, get pre-approved with multiple lenders first. This will allow you to compare various loan offers based on your financial situation. Moreover, the pre-qualification process is often instant and only requires a “soft” credit check, so it won’t negatively impact your credit scores.
Step 2: Choose A Lender
Compare your loan offers and choose one that comes with affordable rates and favourable terms. Be sure to also compare funding times if you need the cash urgently.
Step 3: Gather All Required Documents And Apply
You’ll need to provide your lender with specific documents to verify your creditworthiness and identity. You can upload these documents and submit them electronically with your application. This may include a government-issued photo ID, bank statements, pay stubs and other related documents. Be sure to read over the application to make sure all the information is accurate.
Step 4: Wait For Approval
Once you’ve submitted the application you should receive a response shortly after. If approved, the funds will be deposited into your account within 24 to 48 hours (via direct deposit or e-Transfer), depending on the lender.
Instant Bank Verification For Personal Loans In Alberta
Online lenders in Alberta often use instant bank verification services to help them quickly and accurately verify the identity and income of loan applicants. When you apply for an online loan, many lenders will require you to log into your bank account through a secure portal. This allows the lenders to get a temporary copy of your account statement which they’ll use to verify your income.
Don’t worry — your banking credentials are encrypted and your lender will not be able to gain access to your account. Bank verification is safe, both for lenders and applicants.
Some major instant bank verification lenders may use when you apply are:
What Do You Need To Get Personal Loans In Alberta?
Depending on the lender you work with in Alberta, the requirements to get a loan will vary. However, there are a few key factors that almost every lender will evaluate:
Get A Quote – Before accepting any offer, it’s a good idea to get a quote from various personal loan lenders in Alberta. That way you can compare and choose from the different rates and terms offered to you.
What Are The High-Cost Credit Personal Loan Regulations In Alberta?
High-cost credit in Alberta refers to credit products with an interest rate of at least 32% or more, thus making them more expensive than other credit products. In Alberta, the High-Cost Credit Regulation framework oversees high-cost credit products to protect consumers as part of the Consumer Protection Act.
All high-cost credit lenders in Alberta must be licensed. Annual business licenses cost $1,000, and each additional business location costs $500 a year to maintain up-to-date licensing requirements.
Further, lenders with physical locations must clearly display their licenses, and online lenders must display their licenses at or near the top of their website homepage.
High-cost credit lenders must be careful how they deal with outstanding debt from consumers. In particular, lenders cannot do the following:
Threaten or harass borrowers about outstanding debt
Call third parties regarding borrowers’ outstanding debt
Call borrowers between 10 pm and 7 am
Maximum Interest Rate
While Alberta doesn’t have any regulations on the interest a lender can charge, there are federal regulations. All lenders must respect the criminal interest rate set by the federal government.
Criminal Interest Rate
Annual Percentage Rate (APR)
APR factors in all the fees and interest costs.
Effective Annual Rate (EAR) Or Annual Percentage Yield (APY)
EAR/APY factors in all the fees and interest costs, but it also factors in the effect of compounding interest.
Is Your Credit Score Important For Personal Loans In Alberta?
Your 3-digit credit score may be an important part of your lender’s application process in Alberta. It’s a way to showcase your creditworthiness, as well as your ability to pay back your loan on time and in full. While most lenders’ requirements vary, it’s best to keep your score at 650 or above to increase your chances of approval in Alberta.
Benefits Of Personal Loans In Alberta
There are numerous benefits to using a personal loan. From spreading out costs to building credit, a personal loan can often be advantageous when used responsibly.
Low-Interest Rate – While the interest rate you get varies heavily on your credit and financial health, it usually is lower than your average credit card.
Large Loan Amount – Unlike a credit card or a Payday loan, you can often qualify for higher amounts with a personal loan. Some lenders offer up to $50,000.
Versatile – A personal loan can typically be used for any expense or purchase. Whether you want to cover a medical emergency, a car repair or a large purchase, there are no restrictions on how you can use it.
Build Credit – An added bonus to a personal loan is the potential impact it may have on your credit. Each payment you make may help improve your credit scores. Moreover, you’d be enhancing your credit mix by adding a new tradeline to your credit report which can also help better your credit.
Can You Get A Loan On Employment Insurance (EI) In Alberta?
Yes, you can still get a loan when collecting EI benefits. While lenders generally require loan applicants to have steady employment and a sufficient income, some lenders may accept non-traditional forms of income, including EI, Canada Child Benefit (CCB) payments, disability, and others.
That said, the interest rate will be much higher if you’re currently collecting EI because of the added risk for the lender.
Places To Help You Get A Job In Alberta
Many employment agencies in Alberta are available to help out-of-work Canadians find employment. These agencies work by matching job seekers with employers looking to fill job roles.
The following are some helpful resources in Alberta to help you get a leg up on your search for a new job:
Manpower Services Alberta
Manpower Services brings over 70 years of experience helping Albertans find work and employers find qualified workers. The company connects job seekers to employers looking to fill job vacancies. It also offers plenty of resources to help train Canadians and develop their skills to boost their chances of landing a high-paying job in Alberta.
Diversified Staffing Services has been in the staffing industry since 1978, and today has more than 160 internal employees located in Calgary, Edmonton, and Red Deer. Over the past three years alone, the locally owned and operated staffing agency has helped over 20,000 people find work in various fields such as construction and nursing.
Some services of Diversified Staffing Services include the following:
Resume writing tips
Randstad is an employment agency that began in the Netherlands and has been in the Canadian market since 1997. It’s considered one of the largest employment agencies in Canada and is made up of a team of recruiters specializing in several industries. Randstad has a network of hundreds of employers across Alberta and connects job seekers to the right employers.
Randstad offers many services to help you find a job, including the following:
Career development assistance
Specialized staff recruiters
Alternatives To Personal Loans In Alberta
If you need financial help to cover all of life’s expenses, personal loans can help. But there are other options available in Alberta that can provide you with the financial support you need, including the following:
Alberta Family Support For Children With Disabilities (FSCD) Program
In addition to the provincial government financial assistance programs available, there are other programs across Alberta that you find useful to help cover the costs of rent, utilities, and child care, among others:
Short-term utility billing services. Residents of Alberta who are at risk of being disconnected from their utility services due to their inability to keep up with their bill payments may find help from the Utilities Consumer Advocate (UCA). This agency serves as a mediator and advocates for customers with utility service providers to prevent disconnection from these important services.
Food banks. There are several food banks located across Alberta that provide food to Albertans who can’t afford their grocery bills.
Emergency shelters. The Alberta Council of Women’s Shelters is a program designed to help support the homeless in Alberta. Various shelters are located across the province and many are designed specifically for certain groups and needs, such as senior homes, accessible shelters, and those with child minding assistance.
Affordable loans for renovations. The Seniors Home Adaptation and Repair Program (SHARP) offers low-interest home equity loans to cover the cost of home modifications to help seniors remain in their homes longer.
Where Can You Find Consumer Protection Offices In Alberta?
Businesses in Alberta are required to follow specific laws under the Consumer Protection Act when it comes to how they treat consumers. These laws are designed to protect consumers and ensure that all business transactions are carried out fairly.
If you believe that your consumer rights are being violated, you can contact a representative from the Alberta Consumer Contact Centre at 1-877-427-4088 to file a consumer complaint or anonymously report suspicious business activities. You can also speak with a representative to find out your rights and responsibilities in Alberta’s marketplace as outlined in the Consumer Protection Act.
In order to qualify for a loan, you must have a source of income. So, while you may not have a job, you can still get a loan if you receive income through other means. This includes Employment Insurance (EI), Canada Child Benefit (CCB), Canada Pension Plan (CCP) and other government benefits. However, do be aware that these loans typically have a much higher interest.
Will a personal loan affect my credit?
Yes, a personal loan is a credit product that can affect your credit score. Whether your credit score is affected negatively or positively is based on how well you pay off your loan. Every full-on-time payment will help build your credit score while every missed, late, and short payment will do the opposite.
Can I still get a personal loan in Alberta if I have bad credit?
Yes, depending on the lender you choose, you may qualify for a loan despite your bad credit. Most lenders that do provide bad credit loans usually base their approval on other financial aspects. Income level, employment stability, debt-to-income ratio are common factors assessed in place of your credit score. Even those who’ve had previous bankruptcies may be eligible.
Should you get a personal loan?
As long as you’re being responsible and know you can make all your payments on schedule, we believe a personal loan can be a great solution. It can not only cover any expense you may have, but proper payments can also help build your credit.
How will I receive my money in Alberta?
This answer may vary according to the way your lender operates. However, the most common way to collect your personal loan is through direct bank deposit.