Dive deeper: Cash advance apps in Canada
Compare short-term loans in Alberta
Where to get fast access to funds when you need an emergency loan.
Short-term loans offer quick and easy access to funds when you’re in a financial bind, even if you have bad credit. But these loans are often expensive to repay, so you should only ever take out a short-term loan in a financial emergency.
If you’re looking for short-term loans in Alberta, there are three main options to consider.
Short-term loans you can get in Alberta
Compare short-term cash advances in Alberta
Apply for an interest-free cash advance to help you cover unexpected expenses.
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Compare short-term installment loans in Alberta
A short-term installment loan can be repaid over a period generally ranging from 3 months to 2 years.
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⚠️ Warning: Be cautious with payday loans
High-cost payday loans are unsustainable for borrowing over a continued period of time and are expensive as a means of longer-term borrowing. If you're experiencing financial hardship call Credit Counselling Canada for free financial counselling (Monday-Friday 8:00am-5:00pm at +1 866-398-5999). You may also want to consider payday loan alternatives. Maximum borrowing costs will vary by province. Review the maximum borrowing cost for your province before entering into a loan agreement.Compare short-term payday loans in Alberta
A payday loan is a loan of up to $1,500 that’s repaid over up to 62 days, but it’s an extremely expensive way to borrow money.
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Option 1: Short-term cash advances
If you’re searching for a short-term loan in Alberta, your first option is to apply for an interest-free cash advance of around $20 to $350. It’s easy to apply via mobile app, there are no credit checks required and there are often no interest charges.
However, you may need to pay a monthly subscription fee to qualify for funding plus a fee to get your money instantly. Advances are typically designed to be repaid when you get your next paycheque, but you may have the option to roll over your loan to the next month.
Pros and cons of short-term cash advances
Pros
- No interest
- No credit checks
- Quick and easy to apply
- Instant funding available
Cons
- Smaller loan amounts than other options
- Monthly membership fee may apply
- You may need to pay an extra fee if you want an instant loan
Am I eligible for a short-term cash advance?
Each provider has its own requirements, but you will typically need to:
- Be a Canadian resident
- Be the age of majority
- Have a valid Canadian bank account
- Meet minimum income requirements
How to apply
Apply via mobile app or website by providing your personal info, contact details and bank account information.
Option 2: Short-term installment loans
Short-term installment loans in Alberta offer lump sums of up to $5,000 that can be repaid monthly over a term of 3 months to 2 years. You can apply directly with a lender or use a broker to compare a range of loan options.
Some lenders work with borrowers who have all types of credit, but you can expect high rates for bad credit. Installment loan rates typically range from 18% - 47%. You also need to watch out for extra fees, such as broker and surety fees.
Pros and cons of short-term installment loans
Pros
- Wide range of lenders
- Options for good and bad credit
- Larger loan amounts than other options
- Long repayment period helps you budget monthly payments
Cons
- High rates for bad credit
- You may need to complete a credit check
- Brokerage fees and other charges may apply
- Generally stricter eligibility requirements than payday loans
Am I eligible for a short-term installment loan?
Eligibility requirements vary depending on the lender, but you will generally need to:
- Be a Canadian resident
- Be the age of majority in your province or territory
- Have a steady source of income
- Have regular employment
- Have a valid Canadian bank account
How to apply
Most lenders accept online applications. You’ll need to provide your name, contact details, employment information and bank account details. It’s worth noting that you may need to undergo a credit check as well.
Dive deeper: Best installment loans in Canada
Option 3: Short-term payday loans
In Alberta, a payday loan offers a lump sum of up to $1,500. The loan must be repaid in at least two installments over a term ranging from 42 - 62 days. There are no credit checks and it’s possible to get funded within an hour, with some lenders approving and funding loans 24/7.
The downside is that payday loans are extremely expensive to repay—lenders can charge you $15 for every $100 borrowed. Combined with the short repayment period, this results in a very high APR.
Pros and cons of short-term payday loans
Pros
- Apply online 24/7
- Get approved and funded 24/7
- Get money within minutes
- No credit checks
Cons
- Very expensive
- Short repayment period makes it easy to get trapped in a cycle of debt
- Watch out for NSF and late fees
Am I eligible for a short-term payday loan?
You’ll typically need to meet the following criteria to qualify for a payday loan:
- Be a Canadian resident
- Be the age of majority where you live
- Be employed or receive a steady income
How to apply
Depending on the lender, you can apply online, via mobile app or in-store. You’ll need to provide your name, address, contact details and date of birth along with your bank account details and income and employment information.
Related: Payday loans in Alberta
Can I get a short-term loan in Alberta with bad credit?
Yes. If you’re applying for an installment loan, some alternative lenders are willing to work with borrowers who have bad credit. Rather than checking your credit score, they’ll consider your income, employment and financial situation to determine whether you can afford a loan. The drawback is that bad credit loans come with high interest rates.
Many cash advance providers and payday lenders do not carry out credit checks, so bad credit won’t stop you from getting a loan.
Must read: Best bad credit loans in Alberta
How to get approved for a short-term loan in Alberta
There are several simple things you can do to increase your chances of getting approved for a loan:
- Avoid NSF fees. A history of NSF fees on your bank statement will show the lender that you may not be able to afford loan payments. Try to apply when you have had no NSF fees for at least the previous three to six months.
- Improve your credit score. Paying down other debts and fixing inaccurate listings on your credit file will help boost your credit score, which will in turn help you get approved with lenders that perform credit checks.
- Check the requirements. Check the lender’s website for details of their eligibility requirements and the information/paperwork you need to provide. This will help ensure a smooth application process.
- Check for errors. If there are any errors in the details you provide, your loan application could be rejected. Double-check that everything is correct before submitting.
- Get a cosigner. If your credit score leaves a little to be desired, applying for a personal loan with a cosigner could boost your chance of approval. Just be aware that the cosigner will need strong credit and have to assume responsibility for repaying the loan if you can’t.
How much do short-term loans cost?
The total cost of short-term loans in Alberta depends on factors such as:
- Your credit score
- Your income
- The loan term
- The lender you choose
- How much you borrow
- The type of loan
To give you an idea of the total cost, let’s look at a brief example.
Representative example: Installment loan vs. payday loan
Let’s say you need to borrow $800 to fix a leaky roof. The total cost of repaying a loan will vary greatly depending on the interest rate and whether you choose a payday or installment loan.
As you can see in the table below, even though both installment loans have quite high interest rates, the payday loan is still the most expensive—and it needs to be repaid in the shortest time period. This results in a payday loan APR of 130%.
| Installment loan 1 | Installment Loan 2 | Payday Loan | |
|---|---|---|---|
| Loan amount | $800 | $800 | $800 |
| Loan term | 6 months | 6 months | 42 days |
| Interest rate | 19.99% | 39.99% | $15 per $100 borrowed |
| Repayments | $141.21 | $149.31 | 2 payments of $460 |
| Total cost | $847.29 | $895.86 | $920 |
Bottom line
If you need a short-term loan in Alberta, there’s no shortage of options to choose from. But short-term loans can be expensive, so watch out for high rates and hidden fees when choosing a lender.
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