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Options for no credit check loans in Alberta

Loans can be an important financial tool for Albertans, especially when they need financial support for major expenses. However, not everyone meets the criteria for traditional lenders, so they may look into alternative opportunities like no-credit-check loans in Alberta.

The relationship between credit scores and loans 

If you have a credit card or a loan, you have a credit score. How you treat your credit card charges and loans determines your score. In Alberta and all of Canada, credit scores range between 300 to 900, and the higher your score, the stronger your credit rating is.  

Credit bureaus in Canada organize credit scores in the following way, and Alberta follows the same credit score measurement 

  • Poor: 599 and below  
  • Fair: 600 to 659 
  • Good: 660 to 724  
  • Very good: 725 to 759  
  • Excellent: 760 and up 

A strong credit score is important in lending, whether you’re applying for a mortgage or another credit card. A high score indicates to lenders that you’re creditworthy, you repay what you borrow, and you don’t have any overdue payments.  

When a person’s credit score drops below a certain point, it becomes more challenging to get approved for additional financing. To access a loan, those with less-than-ideal credit scores approach lenders who are less likely to look at credit scores. 

Happy couple at home with their laptop.

What is a no-credit check loan? 

No-credit check loans may also be called bad credit loans, and they are alternatives to loans from traditional financial institutions. Those whose credit score don’t meet traditional lenders’ criteria or simply want another form of funding may look into no-credit-check loans.  

Non-bank lenders in Alberta have no-credit-check loan opportunities and have their own set of criteria. Because they don’t normally run a credit check, they can be easier to qualify for, but their offers may come with high interest rates, and their loan amounts may be limited.  

Benefits of no credit check loans 

Because most no-credit-check loans are from alternative lenders, they offer unique advantages that traditional banks don’t. 

  • Simple qualification criteria—depending on the lender and type of loan, you may only need to provide the value of your collateral or your personal identification. Even if some lenders look at your credit rating, it’s less likely to affect your approval chances. 
  • Faster approval process—loans with no credit check are processed more quickly because some lenders don’t have to look at your credit rating. They’ll also understand the urgency of the loan compared to the bank.  
  • More accessibility—if you provide collateral for your loan, you may be eligible for a significant amount of money. Rather than your credit score affecting your total or your chances of approval, the collateral determines the outcome.

Options for bad credit loans in Alberta 

You can find a personal loan with no credit check from multiple sources in Alberta. Home equity loans are among the common ways to access a loan without needing a strong credit score.  

 Online payday loans 

No credit check payday loans have their name because they are lump sums from online lenders that have to be repaid by the next paycheque. They are usually unsecured loans, so they don’t require collateral or a minimum credit score. 

Although an online payday loan may be quick to access and can accommodate people with a low credit score, their loan offers usually have high interest rates. The loans can have an annual percentage rate (APR) of up to 442%, which could result in borrowers paying more in interest than the principal.

Car title loans 

A car title loan is a secured loan, where your car can be collateral that guarantees you’ll repay what you borrowed. The value of the loan will depend on the value of your car, and you’ll likely get approved if you’ve completely paid for it. Although a vehicle title loan may not require credit checks, the specific criteria depend on the lender.  

Home equity loans  

If you are a homeowner, you have a hidden financial tool in your property, which is your home equity. You can calculate the value of your equity by subtracting your outstanding mortgage balance from the appraised value of your home.  

The value you calculated can be accessed as a home equity loan, and the more you have, the more you can apply for as a loan. If you’ve paid off at least 25% of your home’s value, you can borrow up to 75% of your home equity, which can be a significantly large loan with high housing values in Alberta. 

Your approval for a home equity loan doesn’t depend on your creditworthiness but on how much equity you’ve built up over the years. Home equity loans are flexible, allowing you to borrow regardless of income, credit score, or employment.

Considerations before committing to a no-credit-check loan 

The possibility of getting bad credit personal loans can be appealing when you haven’t had time to build your credit history or have a poor credit score. As you’re exploring your options to get financial assistance, keep some tips in mind before you send your application. 

  • Compare different lenders—the right lender will be willing to understand your situation and accommodate it. A good loan offer is more than just about a good rate; it’s also about a loan that meets your needs and a lender who has responsible lending practices. 
  • Confirm terms and conditions—a loan is a contract with terms and conditions, so it’s important to understand the commitment. Be sure to look over everything, ask questions, and clarify details.  
  • Get an accurate home appraisal—since one of the options for a bad credit loan is a home equity loan, calculating your home equity can determine how much you’re eligible for. The more you have, the more you can potentially obtain.  
  • Evaluate your financial position—although a bad credit loan in Alberta can help you financially, they are an additional financial obligation. With the amount and interest taken into consideration, determine if the loan can ultimately help you in your situation.  

How to get a home equity loan with Alpine Credits 

Alpine Credits believes that a bad credit score should not inhibit Albertans from the opportunity for substantial financial support. We make the loan application process simple and provide near-instant approval. Whether the money is for unexpected expenses or further education, you can find funding in your property value. 

  1. Apply online—if you are a Canadian homeowner in Alberta, you can apply for a home equity loan. Rather than asking for your credit information, you’ll be asked to provide information about your home. 
  2. Approval—if you have at least 25% equity in your home, you’re eligible for a home equity loan worth up to 75% of your property. You’ll hear back from Alpine Credits about your application in as little as a few hours.  
  3. Fund your goals—home equity loans can have potentially high values, which makes them great options for emergency loans or for debt consolidation.  

You can contact a Financial Solutions Specialist at Alpine Credits free of obligation. Each person on the team is an expert on home equity loans and will be able to answer all your questions or help you get started on the application.  

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Frequently asked questions

Most lenders require your credit report before approving you for a loan, but it doesn’t have a strong influence in some circumstances. One example is home equity loans. Your credit score doesn’t determine your loan approval or your offers, only your home equity does.  

You can use the equity value you’ve been building in your home as emergency money. Home equity loans are quickly accessible and can be obtained within days of approval. If you have enough equity, you’ll also receive a substantial loan. 

In Alberta, you’re allowed to borrow up to 80% of your home equity, depending on the lender. With Alpine Credits, you can borrow up to 75% of your home equity, which is determined by how much of your property you’ve paid off You could potentially receive hundreds of thousands of dollars.

Since home equity loans are more flexible lending options, they don’t require your credit score or income status, allowing you to repay with disability income. The main qualifying factor for a home equity loan is that you own your home.