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Two young women looking at bad credit loans in Edmonton

Bad Credit Loans in Edmonton

Your credit score is an important determining factor in whether you’ll receive additional funding from traditional financial institutions. However, not everyone has had the opportunity to build their credit profile or has a strong credit score, so some lenders offer bad credit loans in Edmonton as an alternate solution.

What are bad credit loans in Edmonton?

A bad credit loan in Edmonton is a loan that gets its name because it’s a form of financial assistance that those with a poor credit score can access. They may also be called no-credit-check loans or poor credit loans in Edmonton, but they accomplish a similar goal of providing alternative financing despite a bad credit score.

How your credit affects your loan approval

For most traditional lenders and credit unions, your credit score plays an important role in your loan application and approval. Lenders across Canada use a standard measurement of credit scores, and the minimum required credit score is usually 600.

Below is one of the ratings most lenders use to measure credit scores.

  • Poor: 300 to 579
  • Fair: 580 to 669
  • Good: 670 to 739
  • Very good: 740 to 799
  • Excellent: 800 to 850

If you have a fair credit score, you may be approved for a loan, but the offers may not accommodate your needs. The lender may limit your borrowing amount or attach a high interest rate. For those in Edmonton who have less-than-ideal credit scores or poor credit history, loans that don’t require a high credit score are usually the solution they turn to.

How Edmonton bad credit loans work

The loan allows Edmonton residents to apply for funding from alternative lenders and use the money to accommodate their financial needs. After they receive the funding, they repay the lender in monthly installments with interest.

Borrowers may have little to no credit history, so a loan for bad credit in Edmonton may be the solution that’s accessible to them.

Alternate options for poor credit scores

If getting a bad credit personal loan in Edmonton is not your ideal way of improving your financial health, you can explore other ways to obtain additional funding.

  • Extra income—finding an additional source of income can help you earn the financing you need rather than approaching lenders.
  • Reduced credit obligations—in conjunction with a side hustle, you can pay off some credit cards and loans sooner rather than later. Credit bureaus will see your diligence in repaying your outstanding balances and adjust your credit report accordingly.
  • Home equity loan—you can get a home equity loan despite having a low credit score. They are good alternatives to unsecured bad credit loans in Edmonton because they have comparatively lower interest rates and more substantial funds.

Requirements for equity loans

One of the characteristics that make home equity financing unique is that qualifying for them has a different set of criteria than unsecured personal loans. Not only are there fewer requirements to meet, but they are also more manageable for homeowners in Edmonton.

  • Sufficient equity—if you own at least 25% of your property, you’re eligible for a loan from Alpine Credits. You can calculate how much equity you have by subtracting your outstanding mortgage balance from the appraised value of your home.
  • Canadian residency or citizenship—to get a loan in Canada, you need to be a Canadian resident or citizen with an active bank account.
An illustration of how home equity works.

Benefits of home equity solutions for people with bad credit in Edmonton

Home equity financing offers important advantages over other poor credit loans in Edmonton.

  • No income requirement—traditional lending opportunities may require a certain income amount before you get approved for a loan, while home equity loans from Alpine Credits doesn’t check your income status.
  • Flexible eligibility requirement—you’re eligible for approval as long as you own your home. You do not need to have to meet a credit score requirement with a home equity loan from Alpine Credits.
  • Significant funding—the more of your house you own, the more funding you’re eligible for. Since the value of your home can reach high values, so can your loan. A home equity loan can offer significantly more than other bad credit loans in Edmonton.
  • Fixed loan payments—home equity loans come with a fixed interest rate, which means your payments do not change regardless of the economic environment. You can budget and plan your finances accordingly.
  • Multipurpose—most types of loans are restricted to a certain purpose, like how a business loan can only be used towards business endeavours. Meanwhile, home equity loans can be used for anything, like improving your home or improving your financial health by consolidation.

How to get a loan with a less-than-ideal credit score from Alpine Credits

Credit scores don’t always accurately reflect a person’s financial habits and shouldn’t be the reason someone is denied a loan. Alpine Credits offers a financial solution by helping you access your equity as a loan.

If you’re a homeowner in Edmonton with more than enough equity, you can apply for a home equity loan and get approved in a few hours. With Edmonton’s housing values rising, you could receive a loan that’ll help you reach your goals.

The home equity loan application process at Alpine Credits can be broken into three simple steps, allowing you to access equity as a lump sum in a matter of days.

  1. Apply online—you can find the online loan application on the website, and you can complete it within a few minutes. You don’t need to provide your credit score or other details about your financial situation. You only need to have enough home equity.
  2. Get approved—you’ll hear back about your application within a few hours. If you have at least 25% equity, you’re eligible for a loan.
  3. Use the funds—Alpine Credits will directly deposit the loan amount into your bank account within a few days of getting approved. You can use it to cover unexpected expenses or to consolidate multiple loans.

If you have more questions regarding bad credit loans in Edmonton, a Financial Solutions Specialist at Alpine Credits can help. As experts in home equity financing, they can help you determine how the loan can fit your goals.

Apply now

Frequently asked questions

The minimum credit score you need to get a loan from traditional lenders is 600. Even if you have the minimum required score, approval isn’t guaranteed, or you may only be offered a high interest rate. As for home equity solutions, there is no credit score requirement, only an equity amount requirement.

If you’re a homeowner, one of the best ways you can get a loan with a low credit score is from Alpine Credits. Your credit score doesn’t play a significant role in the application process, making loan approval more likely. If you own at least 25% of your home, Alpine Credits may have the solution to your financial needs.

You can borrow money from the equity you have in your home. With a collateral, the eligibility criteria for a loan are more flexible.