Get a Bad Credit Loan in Edmonton

A bad credit score in Edmonton is any score below 575. This is a general rule of thumb in Canada, but some lenders might not stick exactly to this number. 

Credit scores in Canada range from 300 to 900. Your credit score is an important aspect of your financial health, as it helps you obtain money from lenders at low interest rates. The higher your credit score, the more likely you are to qualify for loans with lower interest rates. Individuals with a low credit score may still be able to qualify for bad credit loans, which have higher interest rates.

It may seem counterintuitive, but taking out a loan can be good for your credit score. Paying down a bad credit loan in Edmonton contributes to your payment history, which is a main factor that impacts your credit score. Making on-time payments towards your loan can help improve your credit score over time. 

Bad credit loans can also help credit scores when they are used to consolidate other types of debt to make repayment easier. Managing debt can significantly improve a borrower’s credit profile and contribute to long term financial health.

When you apply for a loan, the lender will likely perform a hard credit check on your credit report. This can lower your credit score temporarily. With Borrowell, you can check your credit score for free without hurting it. You can also compare loan options available to you based on your credit score. Comparing options before applying can help you avoid hard inquiries from lenders and reduce impacts to your credit score. Sign up today to find the best bad credit loans available to you.

In Edmonton, bad credit loans can be used for practically any financing need. Bad credit loans come in a variety of amounts and term lengths, and have flexible qualification requirements, making these types of loans attractive to a wide range of borrowers. One of the main uses of bad credit loans is consolidating other debts, but this is not the only way that funds can be applied.

Some examples of how borrowers in Edmonton use bad credit loans include:

• Car purchase or repair

• Home improvement 

• Paying bills 

• Settling tax liability

• Covering unexpected expenses

• Funding large purchases

Borrowers with bad credit may find it difficult to access a loan from traditional lenders, but with online and alternative lending platforms, getting a loan in Edmonton, even with bad credit, is simple and quick. 

While many online lenders will work with borrowers with bad credit, applicants will still be required to provide several documents. Preparing what you need in advance can help get your loan application processed and approved faster. 

These are some of the documents that most bad credit loan providers will request:

• Proof of Canadian bank account

• Proof of employment and income, for example, paycheck stubs

• Tax slips

• Government ID attesting to legal age (18 years old or above)

• Proof of residency

If you have bad credit, it’s likely you’ll have fewer loan offers to choose from and with less favorable terms, so knowing what you are likely to qualify for can save time and prevent negative impacts on your credit score. 

Borrowell can help you quickly access your credit score and see what loans you can qualify for based on your credit score. You can sign up for free and compare loan offers from over 50 trusted Canadian lenders, with loan amounts up to $35,000 and a variety of term lengths available. Once you’ve found a loan that’s the right fit for you, you can start the online loan application through the Borrowell platform.

Bad credit loans in Edmonton typically range from $500 to $35,000. The total amount you could receive will vary depending on the lender you work with. Lenders will evaluate many factors to determine the amount they can lend you, including your employment history, your income, how much debt you are currently carrying, and your credit history.

It is possible to find both unsecured and secured bad credit loans in Edmonton, but it’s important to understand the differences between each. Secured loans are guaranteed by collateral that provides insurance on the loan. If you choose to get 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 as insurance on the loan, the lender can provide you with a lower interest rate. 

Unsecured loans do not require collateral, but the lender will likely only qualify you for loans with higher interest rates. This is because the lender is taking on greater risk based on your credit score, and there is nothing in place as insurance on the loan.

Typical interest rates range between 10.99% to 39.99% for bad credit loans in Edmonton. They vary greatly depending on the lender and their qualification criteria. Interest rates on bad credit loans in Edmonton cannot go higher than 60% by Canadian law. Interest rates are determined by a range of factors, including the loan term, the loan amount, and the borrower’s financial profile.

Bad credit loan terms range from 6 months to 5 years. Shorter terms typically carry lower interest but higher installment payment amounts, while longer terms carry more interest but afford lower payment amounts.

There are a number of ways that bad credit loans in Edmonton can help you achieve your financial goals. Here are some key ways that a loan can help you:

• Pay back debts with higher interest rates: The right loan can help you pay off high interest credit cards and other debts so that you can get control over your finances

• Consolidate multiple debts into one manageable loan: When used correctly, a debt consolidation loan can make it easier for you to manage your payments, helping you improve your financial habits and your overall financial health 

• Rebuild your credit score by improving your payment history: Repaying loan installments on time and in full is also a good way to rebuild a low credit score; this can help increase your chances of qualifying for more favourable loans in the future.