Meeting loan approvals in this day and age can be rough with all the things required to qualify for one. A few of these requirements you need to meet including having credit, having a good credit score, and having a good credit to debt ratio.

Why do you need credit to get credit? That sounds like some backward sorcery, but it’s the truth.

You can get a credit card as long as you put a prepaid deposit on it… and that is how you can start building your credit along with several different ways. We won’t get into those details, but if you’d like to learn more, Google “how to build my credit in Canada” and several articles will surface for you to use as a guide.

Let’s review the differences between qualifying for a loan with the bank vs a car title loan approval.

If you are looking to get a loan with a bank in Alberta, expect the following.

Credit Score

  • Having a great credit score is important to the bank when you are looking to secure your next loan. If your credit score is below 650, a bank will generally not approve you for a loan.

Debt to credit ratio

  • If you have lots of credit, it won’t matter if you have lots of debt. If you have maxed out your credit, you could still have a good credit score but showed you have met or exceeded those limits, this will come as a hit to your credit report. Banks need to see that you have credit, a good credit score along with you not coming too close to your max credit limits.


  • If you are employed, the banks will require that you have been at your employment for at least 6 months and if you can provide your T-4 they can verify your income.


  • If you are a contractor or an entrepreneur, the banks will expect you to provide proof of income for at least one year. If you do not have taxes filed and cannot prove your income without providing your tax information, most banks will not consider this until two years.
Car title loans

Car title loans

If you are looking at getting a quick car title loan in Alberta, expect the following.

Application process

  • The application process is fairly easy as long as you have your title in hand and a photo ID. The bank must not own your car – you must own it and not have anything owing on the loan of your vehicle. You can also apply for a car title loan online and often be approved in 24 hours.

No credit check needed

  • The great thing about these loans is that you can be approved without a credit check at all. No credit is needed and your credit will not be checked.

You keep your vehicle

  • The other great thing about car collateral loans is that you get to keep your vehicle. If you make your payments on time, you will always get to keep your vehicle and at the end of your term, you will get your title back.

All about the terms

  • The reason these types of loans are so popular and are accepted is that they are not only safe, they are easy to pay off and you won’t be penalized for paying your term out early. You will get to avoid the interest rates. These loans are extremely affordable and the term is set for a long period. This comes with higher interest rates.

These car title loans are a great way to go if you are looking for a way to put a down payment on something, going to further your education or you need a small business loan. Sometimes we have emergencies and need to pay bills or pay someone back. These loans are great to turn to for many things in life. Remember, they are an option for when you need them.