Best Personal Loans In Alberta For May 2024

We reviewed 78 popular lenders based on 17 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the 10 best lenders based on the weighting assigned to each category:

• Loan details: 20%
• Loan cost: 25%
• Eligibility and accessibility: 30%
• Customer experience: 15%
• Application process: 10%

Within each major category, we also considered several characteristics that would benefit those with bad credit in particular, including awarding an extra five points for lenders offering a low maximum APR, a low minimum credit score, a high maximum loan term and cosigner/borrower capability. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like prequalification options and mobile apps.

Where appropriate, we awarded partial points depending on how well a lender met each criterion.

Only those lenders that operated in the province of Alberta were considered.

Some personal loan lenders offer what appears to be multiple types of loans (e.g. auto loans, payday loans), in reality these are simply standard personal loans marketed for a specific use. The structure of the loan itself stays the same regardless of how it is used.

Though there are aspects of a loan that differ, such as the repayment period, whether the interest rate is variable or fixed and so on, the qualitatively different types of loans you can get in Alberta are unsecured loans and secured loans.

Unsecured loans

Unsecured loans are personal loans that do not require any form of collateral to protect the lender if you default on your payments. Instead, the lender can sue you or take advantage of the right of offset: A clause typically written into banking agreements that allows an institution to recover money from you that they are owed. This means that if you have other bank accounts with that institution, or its affiliates, they will be able to take those funds without your prior knowledge.

Secured Loans

Secured loans, on the other hand, are loans covered by collateral, such as a car or other asset. This means that in the event of default, the lender will be able to take that asset from you. Keep in mind that secured loans may have higher borrowing amount thresholds and lower interest rates, because the lender in these situations is taking on less risk.

Related: Secured Vs. Unsecured Loans

Personal loans might seem like an easy-out for someone caught in a financial bind, or if they are looking to upgrade their capital for a limited period of time. While there are a number of personal loans offered in Alberta that have reasonable interest rates backed by respected vendors, there are a number of pros and cons to be aware of.

Pros

• Help you build credit: Personal loans offered by vendors that do not require any credit history can help newcomers to Canada or those with poor credit scores build up their credit history. This works so long as the borrower uses their loan responsibly and never misses an interest payment.
• Give you more financial flexibility: Having access to quick cash can help you in a pinch, whether that’s paying off an unexpected bill or simply going on that vacation you’ve been dreaming about.
• Consolidate your debt: One common aspect of personal loans, more specifically debt consolidation loans, is their ability to combine your debts into one convenient personal loan. Rather than keep track of credit card balances and other personal loan debts, consumers can focus on one single target. Note that consolidating your debt could result in a lower total interest rate, if your credit score has improved since you took out your initial loans.

Cons

• Accrue expensive interest charges: While personal loans that do not require a credit history can feel like a shoo-in for those needing funds fast, they typically carry a high price tag in the form of interest rates. Though by law lenders are not allowed to have rates above 60% per annum on their loans, borrowers can still see rates of 40% and above.
• Hamper you with unneeded debt: Depending on your reason for taking out a personal loan, it can unnecessarily saddle you with debt. In some cases, it’s unnecessary debt which you should not have taken on in the first place. Debt sitting against your name for no good reason is almost never a good idea.
• Cripple your credit score: Though personal loans do offer consumers the ability to build their credit score from the ground up, it also lets them dig themselves into a deeper hole. Make sure to understand your fees, interest rates and payment terms upfront, so you can take out funds knowing you won’t miss a payment deadline.

Related: Pros And Cons Of Personal Loans

In addition to being the age of majority in Alberta, which is 18, and typically being a Canadian resident, lenders require a number of other qualifications to be met before giving you funds.

• Employment status: Some lenders, such as easyfinancial listed above, require borrowers to be in certain employment statuses like full-time or part-time employed. With easyfinancial specifically, they require any applicant to not be currently taking social assistance or welfare (i.e. Employment Insurance).
• Credit score: While a number of lenders Forbes Advisor reviewed did not require customers to have a robust credit history, typically lenders with lower interest rates require better credit scores. ATB Financial, an Alberta bank, is one lender that currently requires a credit score of 640 or higher—in exchange for interest rates ranging from 7.20% to 14.20%.
• Income: In addition to your employment status, lenders usually also require you to make a certain amount of income each month. To prove your income, lenders may require you to send them multiple months’ worth of pay stubs.
• Collateral: If you choose to get a secured loan—a loan covered by collateral such as a bank account or vehicle—the lender may require proof of ownership.

Related: Personal Loan Requirements To Know Before Applying

Getting a personal loan in Alberta is typically just a matter of collecting the right information for the lender you want to work with. According to the Financial Consumer Agency of Canada, potential lenders usually require the following before proceeding with a loan agreement:

• Proof of a regular income
• Proof that you own a bank account(s)
• Proof that you have a permanent address

Lenders will usually run a credit check before proceeding to lend you funds, and will likely review your debts, credit report and credit score.

Once you have all the information in hand, you can apply for a personal loan either online or in person—depending on the type of loan you are applying for. Once your application is approved, you will likely receive funds either same-day or within the same week.

Related: How To Get A $2,000 Personal Loan

Though similar in that both products allow you to borrow a certain amount of funds with a prescribed interest rate, personal loans and lines of credit do have key differences. Loans are a lump-sum product, meaning once the borrower and lender agree to the terms of their loan agreement, the borrower is given the requested funds and interest immediately begins accruing. The initial amount lended out (known as the principal)—plus the interest—will need to be paid back according to the terms of the loan agreement.

In contrast, a line of credit is a pay-as-you-use product. Once the borrower and lender agree on an amount the borrower would like to access, and the interest rate charged, the borrower then has access to the funds requested. However, the borrower has no obligation to use the funds at any time, and they are only charged interest on the amount that they use—until they pay it back. Additionally, a line of credit has a shelf-life that lasts as long as the parties want, like a credit card, unless the agreement is broken in some fashion (i.e. the borrower chooses to not pay interest owed).