Get a Bad Credit Loan in Alberta

In Alberta (and the rest of Canada), credit scores range between 300 and 900. A bad credit score in Alberta is anything below 575. In comparison, a good credit score is considered to be 660 and above.

In Canada, credit scores are overseen by two major credit bureaus: Equifax and TransUnion. These credit reporting agencies gather information from your lenders and creditors, including debts you owe and payments you’ve made, to generate your credit score and credit report.

To find out if you have bad credit or not, you can sign up for Borrowell to get your free Equifax credit score and credit report.

Luckily, if you do have a bad credit score, there are many things you can do to increase your credit score. You should first understand what makes up your credit score. There are five main factors that comprise your credit score. Each factor contributes a certain amount towards your overall score. The five factors are:

• Payment history (35%)

• Credit utilization (30%)

• Credit history (15%)

• Credit mix (10%)

• Credit inquiries/credit checks (10%)

All of these factors are important, but as you can see, some factors impact your credit score more than others. To improve your score, here are some of the key areas you should tackle: 

• Make sure you always make payments on time and at least make the minimum payment

• Create a budget so you know exactly how much you can afford to spend each month; it’s important not to overextend yourself and take on too much debt, as this can negatively affect your credit utilization ratio 

• Don’t apply unnecessarily for too many credit cards or loans; if you apply for multiple credit cards at the same time, many lenders will make hard inquiries on your credit report, and this will negatively impact your credit score

If you do need a credit card or loan, work with a reputable lender that specializes in lending to folks with bad credit; when you make payments towards your loan from this lender, you should see your credit score improve over time

A loan can help improve your bad credit rating if you manage the loan responsibly and make payments on time. Your repayment history makes up 35% of your credit score, so if you make regular payments, your credit score will increase over time. Just be sure to confirm that your loan provider reports your loan to a credit monitoring bureau. 

If you’re looking to find a loan to improve your credit score, Borrowell can help. By signing up for free, you can get matched with trusted Canadian lenders who specialize in helping borrowers with bad credit. You can compare lenders and loan offers before even applying for one, so you won’t hurt your credit score by making unnecessary credit inquiries. Sign up today and find a loan with bad credit.

Overall, in Alberta you can expect to borrow as little as $500 and as much as up to $35,000. The amount you can borrow for bad credit loans in Alberta varies and depends on your specific lender. Lenders will look at things like if you’re employed, your income, how much debt you’re already carrying and the kind of loan you apply for.

If your credit score is below 575, you’ll likely be applying for a bad credit loan. These loans often have different qualification criteria than typical loans. Lenders that provide bad credit loans each have their own criteria for qualifying bad credit applicants. They may require that you provide collateral or a co-signer to qualify for their loans.

To find out what loans you qualify for, sign up for Borrowell to see what loan options are available based on your credit score.

With Borrowell, you can quickly find and compare lenders that provide bad credit loans in Alberta. You can see which loans and interest rates you have a high chance of qualifying for with your credit score. Once you’ve found a loan that’s the right fit for you, you can start the online loan application through the Borrowell platform.

Generally, online lenders have a fast and simple online loan application process that takes under 10 minutes. Be prepared to provide the following information when applying for a loan:

• Proof of income: For example, paycheck stubs, bank statements, or tax slips 

• Proof of age with a valid government ID: For example, a driver’s license

• Proof of Canadian residency: For example, bills or ID 

• Proof of Canadian bank account to deposit and withdraw funds

In Alberta, you can expect a general range of interest rates between 10.99% to 39.99% for a bad credit loan. Interest rates vary greatly depending on the lender and their qualification criteria.

It may make it harder to get a loan, but there are lenders in Alberta who will still provide a loan to those who have declared bankruptcy. These lenders may require more information from you, including your employment history and a letter of referral. They may also need you to offer some form of collateral or have a co-signer to qualify for their loans.

Bad credit loans in Alberta can either be secured or unsecured, so it’s important to understand the differences.

With a secured loan, you will need to offer collateral to the lender (like a car), which they can obtain from you if you default on your loan payments. With collateral in place, the lender can provide you with a lower interest rate, making your payments easier to manage. Secured loans are a great option for individuals with bad credit to safely and responsibly improve their credit score over time.

With an unsecured loan, you do not need to offer collateral to the lender (like a car) if you default on your payments. That said, unsecured loans tend to have higher interest rates than secured loans.

As long as you make the required payments towards your loan on time, a bad credit loan will not show up negatively on your credit report. In fact, making regular payments towards your loan will help you increase your credit score over time. Just be sure that your lender reports your loan payments to both Canadian credit monitoring bureaus (TransUnion and Equifax).