Consolidation loans in Alberta: securing consolidation loans in Edmonton
Consolidation loans in Edmonton have become increasingly popular. After all, Edmonton is one of two major cities in Alberta, which outranks all other Canadian provinces when it comes to consumer debt.
Loans consolidation in Edmonton isn’t always cheap, making many of these loans questionable solutions for those who live there. Keep reading to learn more about consolidation loans in Edmonton and how Alpine Credits has been helping locals find much better rates for more than 50 years.
An overview of consolidation loans
Consolidation loans is a fairly simple concept. It involves combining multiple small debts into a single larger loan.
People often seek out consolidation loans as a means of lowering the effective interest rate on their debt. For example, if your current creditors are unwilling to give you better interest rates despite improvements to your credit rating, you could simply get a brand new loan at a better rate and pay those other debts off immediately. You’d then be left with a lower interest loan to pay.
More common, though, is that people seek consolidation loans to make their financial burden more manageable. Consolidation loans leaves you with a single monthly payment to remember, which may help you avoid falling behind and the many issues accompanying that.
How consolidation loans works with Alpine Credits
The problem with many consolidation loans in Edmonton is that they’re unsecured, much like the original loans people typically seek to consolidate. This translates to more risk for the consolidation lender and a higher interest rate for you.
That’s where Alpine Credits comes in. We help people in Edmonton unlock equity in their homes, which they can use to pay off high-interest, unsecured loans such as credit cards.
Calculating your home equity is simple.
As long as the amount of money you’re seeking for a consolidation loan exists in the form of home equity, Alpine Credits can help. To learn more, get in touch with us.
How Our Consolidation Loans Compare to Others in Edmonton
Because our consolidation loans are secured, we’re less concerned about your credit score than most other lenders in Edmonton would be. As a result, our loans are more substantial, and come with better interest rates than you’d typically find elsewhere.
See the chart below for figures from four major loans consolidation providers in Alberta.
| Lender | Loan Amount | Rate |
| Lender A | $1,000 to $35,000 | 5.99% to 29.19% |
| Lender B | $500 to $1,000 | 28% to 32% |
| Lender C | As much as $15,000 | 12% |
| Lender D | As much as $1,500 | 15% to 23% |
Next, visit this page to learn more about our interest rates and how they compare. Keep in mind, receiving approval for our consolidation loans is typically a much easier process than you’d find with other lenders.
We also offer more substantial consolidation loans ranging from $10,000 to $500,000, whereas the lenders referenced above put caps well below $40,000.
Which loans qualify for consolidation loans in Edmonton?
Traditional consolidation loans lenders gear their services towards unsecured debt, including personal lines of credit, student loans, and credit cards. They often don’t allow you to consolidate secured debt such as an investment property mortgage or a car loan.
Part of the rationale for excluding these loans from consolidation is that they usually come with lower interest rates anyway. In other words, many people have no incentive to consolidate those loans.
However, at Alpine Credits, we understand that everyone’s financial situation is unique. As long as you have equity in your home, we can help you consolidate any type of debt, whether secured or unsecured.
How traditional consolidation providers in Edmonton evaluate applications
Traditional providers of consolidation loans in Edmonton evaluate much more than the types of debt you have. Below are the other factors they look at.
Your credit report
What many Canadians don’t realize is that your credit score itself is not the only factor that determines whether or not you’re approved for a loan. In fact, the credit score you see on reporting sites often differs drastically from what lenders actually see on their end, according to Equifax Canada.
Of greater importance is what lies in your credit report, which may actually result in a poorer evaluation of your financial situation than you might think.
For example, lenders may look at the types of loans you have along with how long it took you to accrue the debt and whether you’ve ever deferred payments.
This is why traditional consolidation loans are often such bad deals. If you’re looking to consolidate debt out of necessity, you may have some indicator of financial difficulties in your credit report that result in a high interest rate.
Economic conditions
Economic conditions also play a role in determining the amount of risk lenders are willing to take, which can impact your likelihood of getting approved.
For example, prior to COVID-19, it was fairly easy to get a loan as long as you had a good credit score. Even mortgage lenders have clammed up, though, which took many by surprise given that property can always be repossessed.
This leaves people looking to consolidate debt and relieve financial pressure in a tight spot. Home equity loans are much easier to get in these situations since you’re essentially borrowing from yourself by tapping into equity. It’s really your money; companies like Alpine Credits simply help you unlock it without selling your home.
Your Debt Service Ratio
Your debt service ratio indicates the percentage of your monthly income that goes towards repaying loans.
Lenders generally shy away from anyone spending more than 35% of their income repaying loans since this likely means they’re overextended and a simple emergency might push them over the edge.
Once again, however, with a consolidation loan from Alpine Credits, you’re essentially borrowing from yourself, which allows us to have more relaxed lending standards.
How to find good consolidation loans in Edmonton
Now that you know more about how consolidation loans work, here are some tips for finding good lenders in Edmonton.
Choose a Reputable Company
Don’t risk borrowing from shady lenders simply because you think you have little chance of being approved elsewhere. Such companies pray on these types of borrowers, slapping them with exorbitant interest rates and unethical business practices.
By choosing a reputable lender like Alpine Credits, you can enjoy competitive interest rates and the confidence that comes from dealing with an ethical company.
One good way to judge a loans consolidation lender is to look them up on the Better Business Bureau website. Alpine Credits, for example, has an A+ rating on the site, which the Better Business Bureau determined as appropriate based on our customer reviews and overall reputation in Canada.
Prioritize Low Interest Rates
If your reason for getting a consolidation loan in Edmonton is to get your financial burdens under control, securing a low interest rate will be of major help. Part of what makes debt so devastating is compound interest’s impact on the balance.
Home equity loans come with some of the best interest rates out there, making them very popular for this purpose.