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Consolidation loans in Calgary, Alberta 

Whether you need $10,000 or $50,000 – Alpine Credits is the best alternative for consolidation loans in Calgary

Consolidation loans in Calgary help people living in the city easily manage different financial responsibilities. Student loans, credit card bills, and vehicle financing are obligations residents of Calgary face but are not out of the ordinary. To help regain financial control, lenders offer consolidation loans in Calgary to simplify all these payments. 

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How consolidation loans work in Calgary 

Consolidation loans are like regular loans. A lender gives a borrower a lump sum that they use towards the intended expense. With the new funding, the borrower repays according to the frequency and with the interest they agreed upon beforehand.  

  1. Receive the funding—once approved for the loan, your lender will deposit the money into your bank account.  
  2. Consolidate financial obligations—the money is yours to use freely, and you can start repaying your credit cards and loans almost immediately after receiving the money.  
  3. Repay the loan—with fewer financial obligations to think about, you only have to focus on repaying the consolidation loan.  

While the structure of consolidation loans is similar to traditional loans, lenders offer them to people who want to simplify their monthly payments. The loan can be used towards any outstanding obligation, like a renovation loan or a credit card you don’t want to use.  

The two main reasons people borrow consolidation loans are to get a lower interest rate and to improve their financial habits.  

Consolidation loans typically have lower interest rates than just one credit card, so the amount you could save is considerably more significant if you have more than one financial obligation. You may be surprised at the total if you have multiple monthly payments and add up the cost that goes to the interest. As a result, monthly payments are considerably less than what you’d be paying if you were paying for all your credit cards. 

With the loan satisfying financial demands, the next step is to avoid falling back into unhealthy spending habits. With a streamlined financial plan, you can determine how much you can spend each month. As beneficial as a consolidation loan is, it’s not an opportunity to spend more.

Types of loan consolidation options in Calgary

People in Calgary have numerous opportunities to decrease their financial obligations. After consolidating with a loan, you can develop a new budget with your current resources or establish a new plan 

Financial planning options 

Outside of a loan, debts can be resolved by distributing your resources to your creditors with a different strategy. A few establishments in Calgary offer debt services that help you determine a plan for your future and act as a mediator between borrowers and creditors.  

  • Credit counselling services—one option is to approach non-profit establishments that provide counsellors to help you develop a new budgeting plan. They are experts in the field of finance, understanding each person’s history to give personalized advice.  
  • Balance transfer credit cards—the existing credit charges will be transferred onto this card so you can focus on repaying one source. The interest rates are comparably lower, which allows you to save money, but you will not be provided a loan.  
  • Debt settlement—you can collaborate with settlement services, and they’ll help negotiate with your creditors on your behalf. Settlement services may be able to lower your interest rate and reduce the amount that you must pay. However, the settlement stays on credit records

Consolidation Loans 

If you prefer, you can borrow money from a lender to apply to your outstanding balances, and it’s one of the more common ways to resolve debt. Most consolidation loans work similarly, where a lender provides a lump sum you can use to pay down outstanding balances. 

  • Unsecured loans—if you didn’t have to provide an asset during your loan agreement or application, your loan is unsecured. Most installment loans, like car or student loans, fall under this category. 
  • Secured loans—the opposite of unsecured loans is secured ones, meaning your loan is supported by one of your assets. You will likely get approved and be offered lower interest rates if you provide an asset of high value.  
  • Home equity loans—a common type of secured loan is a home equity loan, in which your property acts as collateral. The value is based on how much equity you have. Many home equity loan lenders do not have strict approval criteria.

Getting a consolidation loan in Calgary 

The criteria for getting a consolidation loan are different between lenders. Choosing the right solution and lender involves determining which standards you can meet.

With financial institutions 

The expectations from the bank are high, requiring you to have a good credit score and income history.  

  • Regular income—salaried workers will most likely get approved because they have the steadiest income. You can still get a loan if you’re a business owner or freelancer, but it will require more verification.  
  • Decent credit score—no late payments or overwhelming amounts of debt contribute to a good credit score. The minimum is usually 680, but the better your score, the more likely you will get approved for the loan.  
  • Clean payment record—if you have a credit card undergoing collections or have too many late payments, traditional lenders may not be as willing to lend.  

With alternative lenders 

Unlike major financial institutions, alternative lenders have criteria most people in Calgary can meet. They may not require your credit score or income but only your information and collateral.  

  • Valid identification—to get a consolidation loan in Calgary, you’ll need to be a Canadian resident and be at least 18 years old. You’ll also need to provide your banking information so lenders can ensure they give the loan to the right person.  
  • Sufficient equity on collateral—because alternative lenders don’t usually use credit scores to determine eligibility, they may ask for collateral instead.  

Benefits of loan consolidation in Calgary 

Successfully managing debt is a significant accomplishment. When you consolidate your financial obligations, you’ll experience the following advantages.  

  • Accelerated financial security—you can reach your financial goals sooner, including repaying your car and ending credit cards you don’t need anymore. Even knowing that your credit charges have been satisfied can relieve stress. 
  • Simplified budgeting—with just one financial responsibility, you can determine your monthly budget by looking at how much goes into the loan you’re paying instead of calculating multiple loans. 
  • Lower interest rates—if you combine all your interest with multiple credit charges and loans, you will find little room to save money. Consolidation loans can have lower rates than credit cards, which helps you save money long-term.  
  • Fixed payments—consolidation loans are usually paid monthly and have fixed interest. You don’t have to consider how the market conditions affect your payments.  
  • Improved credit score—by minimizing your financial obligations, your credit score rises, which opens more opportunities for you to qualify for other loans, like mortgages.

How Calgarians use consolidation loans 

Once you understand how consolidation loans work, you’ll find the rest of the process straightforward. One of the most important mindsets when borrowing a consolidation loan is to see it as an opportunity to change your financial habits.

Tips for a successful loan consolidation in Calgary 

Many Calgary residents benefit from loan consolidation because they have an effective plan surrounding the funds they’ve been given.   

  • Use the money for its intended purpose—a consolidation loan can only be effective if you use it for only your financial obligations. Even with leftover funds, be sure not to spend it elsewhere.  
  • Create a repayment plan—even before you apply for a consolidation loan, determine how much you can afford per month. It will help you with the negotiations and help you see how much spending money you have.  
  • Set up automatic payments—loan payments are usually automated. If you haven’t set up your bank account for automatic withdrawals, do so for consolidation loans.  
  • Establish new spending habits—while consolidation loans can provide many benefits, they ultimately allow you to change how you use your money. You can cut unnecessary credit cards and develop a new budgeting plan.

Consolidating debts with a home equity loan from Alpine Credits 

As mentioned, a simple way to reduce your outstanding bills is through a home equity loan. Getting one from Alpine Credits follows a simple process.  

  1. Apply online—the process is simple, only requiring your identity and the appraised value of your house. 
  2. Get approved—you’ll hear the results of your application in less than a week because Alpine Credits processes the applications efficiently.  
  3. Consolidate loans—with the high value of home equity loans, you’ll have more than enough to repay your outstanding balances.  

If you own at least 25% of your home, you are eligible for a home equity loan from Alpine Credits. After living in your current home for years, you’ll have naturally acquired a significant amount. You can achieve a low-interest loan in Alberta with flexible criteria by accessing your equity as a lump sum. 

Alpine Credits’ main approval requirement is having at least 25% equity in your property. You don’t need to prove a long income history; owning your home is enough.

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Frequently asked questions

You won’t know you’re eligible for a consolidation loan until you apply. Traditional lenders determine your approval by your credit score and income, while alternative lenders will look at other factors, like the value of your asset. 

You can consolidate any debt, including your vehicle, student loans, personal loans, and credit card charges. Consolidation loans can satisfy any financial obligation.

If you’re managing your payments effectively, your credit score can increase significantly, especially since one loan has repaid multiple balances. Additionally, some lenders don’t report to credit bureaus, so the bureau will only see the consolidation loan results, increasing your credit score.  

They can be both, and people choose one or the other depending on their financial situation. Those with decent credit scores may have better chances of getting approved for unsecured loans than those with lower scores.

The amount you can receive on a consolidation loan depends on your lender, financial history, and the type of consolidation loan you get. Unsecured loans are usually lower than secured ones, and lenders may offer bigger loans to those with higher credit scores.

The interest rate for consolidation loans starts at the market rates and changes depending on the lender’s criteria, making interest ranges from 5% to 30%. If you provide collateral, you may be offered lower rates.