Get a Personal Loan in Edmonton

You can use your loan to fund a wedding, a vacation, home renovations, credit card consolidation, major purchases, unexpected expenses and more. Unlike a mortgage, which is specifically designed to be spent on a house, a personal loan is a much more general type of loan that can be used for anything.

Personal loans in Edmonton can range from $500 to $50,000 in size. Each individual loan provider in Edmonton, Alberta typically has a different range of monetary amounts that they make available to applicants.

How much money you’ll be given depends on numerous factors, including your credit score, credit history, how much other debt you’re carrying, if you have a history of bankruptcy or missed payments, your employment income, and more. Having collateral or a co-signer to guarantee repayment of your loan will also influence how much money you’ll be offered when applying for a personal loan.

Here are the main pieces of information that all loan companies in Alberta need when you apply for a personal loan. This includes loan companies in Edmonton:

• Valid form of ID: for example, an Alberta driver’s license

• Proof of residency: for example, a dated utility bill or tenancy agreement with your full name and address

• Proof of employment and income: for example, pay stubs or a verification letter from your employer

• Social Insurance Number

Each lender or financial services company may have slightly different requirements. Depending on the lender you work with, you may be asked to supply these documents physically (through mail) or digitally.

To qualify for personal loans in Edmonton, you must meet the following requirements:

• Be at least 18 years old

• Be a Canadian resident

• Have a Canadian bank account

• Have at least one-year’s worth of credit history

• Meet minimum income requirements and have a consistent employment history

• Have a good debt-to-income ratio

Your credit score also impacts your ability to qualify for a loan. Your credit score is a number that ranges from 300 to 900, with 900 being the best. This score is a reflection of your creditworthiness. Most lenders will rely on your score to decide if you are a responsible borrower who can repay the money you borrow. If you have a credit score of 660 or above, you have demonstrated good creditworthiness. Lenders in Edmonton will be more willing to work with you, and you’ll have a better chance of being approved. 

If you have a credit score below 660, there are still short-term loan options available. These loans may have higher interest rates because the lender is taking on a larger risk. If you’re not sure whether you qualify for a loan, sign up for Borrowell to get your free credit score and see what loan options are available to you, based on your score.

When used properly, a loan can help you substantially improve your credit score. Your credit score is made up of five main factors. Each of these factors contributes a different amount to your overall credit score: 

• Payment history (35%)

• Credit utilization (30%)

• Credit history (15%)

• Credit mix (10%)

• Credit inquiries (10%)

When you take out a loan, you have an opportunity to improve your payment history and your credit history. These two factors make up 50% of your credit score calculation. For more information on how credit scores are calculated, check out our ultimate guide to credit scores.

To ensure that your loan improves your credit score, make sure that your lender is reporting your loan and payments to a credit bureau like Equifax. This will ensure that there is an official record of your loan and the regular payments you are making, which will help increase your score. As long as you make regular payments and manage your short term or long term personal loan with care, your credit score will increase over time. Your score, however, will only improve if you make on-time payments on your loan. If you start to default on your payments, your loan will start to have a negative effect on your credit score.

Personal loan rates for short term or long term loans vary greatly all across Alberta. On average, in Edmonton, you can expect interest rates to range from as low as 5% to as high as 30%. Payday loans can have exorbitant rates as high as 50%. The lower the interest rate, the better chance you’ll have of paying back your loan. Borrowers with good credit scores will frequently qualify for lower interest rates. The lower your credit score and the shorter your credit history, the higher amount of interest you can expect to pay on your loan.

Yes, it’s possible to consolidate loans in Edmonton. A debt consolidation loan can help you get debt under control. This type of loan is when a borrower takes out one single loan to pay off numerous debts. With a consolidation loan, you can get affordable terms that will save you money and you also only have one monthly payment, which can make loan repayment much more manageable.

Personal loans in Edmonton do not require a down payment.

This depends on your individual needs and circumstances. Secured loans are when the borrower guarantees repayment of a loan by offering some form of collateral, like their home or their car. Typically, secured loans are larger and have lower interest rates than unsecured loans. For unsecured loans, a borrower does not need to provide collateral. Because there’s no collateral involved, unsecured loans in Edmonton are easier and faster to get approved for. However, they have higher interest rates because lenders take on a higher amount of risk with no collateral required.