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How to secure loans in Alberta

Whether you need $10,000 or $500,000 – Alpine Credits is the best alternative for loans in Alberta

Husband and wife looking at their loan application.

As major cities in Alberta like Edmonton and Calgary are growing, so are the needs of their residents. Fortunately, lenders like Alpine Credits provide loans in Alberta and are willing to support borrowers in meeting their financial obligations.

Steps to get a loan in Alberta 

Whether you’re applying for an unsecured personal loan or a secured home equity loan, the steps to getting a loan in Alberta are generally similar.

Calculate your loan needs

Have a clear purpose for your loan because by doing so, you can determine the exact loan amount you’ll need. 

Evaluate different lenders

With multiple financial institutions and alternative lenders, finding the right one in Alberta takes time. Look for good deals but also be mindful of hidden fees. Banks can offer loans for different purposes, may enable one to apply for an online loan or in person, and may come with low interest rate. However, banks also have stringent eligibility criteria and a lengthy process of approval. Be sure to find a lender that fits your financial situation and goals.

Apply for a loan

Applying at multiple lenders and seeing where you get approved may be tempting, but confirm that the lender doesn’t conduct hard credit checks. Otherwise, your credit score will decrease with each application. Lenders usually let you apply online or through the phone. Applying for online loans or instant loans may be tempting for instant approval and quick cash needs but be wary of lending scams and generally higher interest rates.

Gather additional information

After you apply, your lender may request more documents, such as your banking information or personal details. Lenders have their own protocols and expectations, affecting their requirements.

Wait for loan application results

a major financial institution can take months to process your application, while alternative lenders may only take a few hours to a few days

Once approved for the loan, the money will be directly deposited into your bank account. You can start putting your plans into motion. Simultaneously, you’ll start repaying the loan according to your agreement with your lender.

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Types of loans in Alberta

Some of your major financial goals will require you to borrow money, which does not surprise banks and other lenders because the average Canadian doesn’t have hundreds of thousands of dollars in their account. Before you begin your journey, you’ll have to decide what kind of loan you need and meet some requirements. On most loan applications and other personal loans in Alberta, you must confirm that you have a minimum credit score of 660, proof of income, and a specified debt-to-income ratio. However, some home equity loans provide a way to bypass those criteria and gain access to funding despite your financial status.

One of the main reasons that people search for extra cash is to consolidate their outstanding bills from credit cards and other unexpected emergencies. For example, Ontario residents can avail of consolidation loans to pay for their financial obligations, which may include online loans, car loans, and other personal loans in Alberta. Some loans can pay for all of a person’s outstanding balances, which results in a simpler monthly payment strategy.

When a consolidation loan satisfies most, if not all, creditors and payments only go towards one source, borrowers can save money. The interest on one consolidation loan can be lower than the total interest on multiple loans and credit cards. If you have availed of personal or even payday loans in Alberta and are struggling to pay them back, getting approved for a consolidation loan may be a good choice. However, getting it at the bank can still be challenging since they may be unsecured loans.

After living in the same environment for several years, many homeowners need to make changes within their homes. Not only does it give the house a fresh look, but it also increases the value of the house. Renovations can cost anywhere from a few hundred dollars to tens of thousands of dollars, depending on the material or hired hands. An excellent way to pay for the improvements is by taking out a loan.

Getting approval for a home renovation loan also depends on how much you need and your financial history. Those with a steady income and a good credit score have better chances of getting approved while getting low interest. Generally, you’ll secure a loan to pay for your renovations as long as you meet the requirements.

Exclusive to business owners and potential entrepreneurs, business loans allow them to invest back into their establishment. Business loans can range through different amounts, depending on the business needs. Many people use the money to buy more equipment, pay more staff, or do other daily operations.

One of the more challenging loans to qualify for is a business loan because both you and your business must look good on the loan application. In the previously mentioned types of loans, the only information that you had to provide was about you and your finances. With a business loan, you must also provide your business’s financial situation.

There are also loans Alberta has that can accommodate those who do not meet qualifications such as having regular income and strong credit scores. Bad credit loans provide unsecured lump sum amounts deposited into your bank account that you’ll repay monthly with interest. Their main characteristic is that those with lower credit scores and unstable funding sources can qualify for this type of loan because their requirements do not revolve around your credit score. Because of that, the loan’s value can reach up to only $50,000, depending on the type of loan.

The steps to get a bad credit loan in Alberta are like any other loan. Despite not requiring a credit score over 660, loans for low credit still need you to provide your debt-to-income ratio and confirm that you receive income. If these aspects don’t meet the lenders’ expectations, you may need a co-signer or a different loan. The loan may be offered with a significantly higher interest rate with additional fees.

A financing opportunity that a lot of homeowners in Alberta don’t realize they have is their home equity. If you own your home and are looking for funding, you can access your home equity as a form of cash. Because home equity is the difference between your home’s appraised value and your outstanding mortgage, the value of a home equity loan can be high. With cities like Calgary and Edmonton starting to grow, property values have also been increasing.

Unlike a personal loan, payday loan, or any other type of loan that does not require collateral, home equity loans have the most flexible eligibility criteria because they are secure loans. Your property is the collateral for the loan, which leads to a comparatively lower interest rate and an almost instant approval process to allow you to access your funds faster. The main factor that lenders look at is the value of your equity instead of looking at your financial details or employment status. You are eligible for a home equity loan if you have paid at least 25% of your mortgage.

Conclusion: home equity loans for all purposes 

Wherever you are in Alberta, consolidating your outstanding credit balances, renovating your house, and investing in your business are all extraordinary goals that require significant financial assistance. Whatever the financial help you need, and regardless of your credit score, age, income, or employment, Alpine Credits wants to give Alberta residents the same opportunity. By accessing funds through the equity in your home, achieving those goals becomes more feasible.

Understanding the types of loans Alberta has to offer may be overwhelming. Contact one of the Financial Solutions Specialists at Alpine Credits to learn more about what home equity loans can do for you. The call is obligation-free, but the Financial Solutions Specialist team members can help you at any step of your search for a loan.

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Frequently asked questions

If you have a strong credit rating and adequate income, you can get approved for personal loans, mortgages, and other types of loans. Alternatively, you can use the equity you have in your house to apply for one. 

Getting a home equity loan is one way for homeowners to get approved for a loan in Alberta. Through Alpine Credits, homeowners can quickly access their equity in the form of cash without having to wait. 

The minimum credit score for personal loans and mortgages in Alberta and the rest of Canada is at 660. While that’s the minimum requirement, a loan is not guaranteed, and you might experience a credit check.  

If your lender reports to the credit bureaus, your credit score will change depending on how you manage the loan. Alpine Credits is an alternative lender that doesn’t report to credit bureaus, keeping your credit score unaffected.  

In general, they do not require you to provide a down payment. High-value loans like mortgages require down payments. Bad credit loans can reach up to $50,000 but don’t need a down payment.