Bad Credit Loans in Burnaby - What to Do When You Need Money
|People with bad credit in Burnaby can actually get help to avoid the fees, high interest, and payments of expensive personal loans.|
The Most Important Question
Why are you searching for how to get a bad credit personal loan? Depending on what your answer is, there could actually be other options available to you that can resolve your debt problems, re-establish your credit, and set your finances back on the right track.
However, it's very important to first ask yourself, "Why do I need this loan?" Click on the answer below that's closest to your answer to see if there are better alternatives for you:
When you have bad credit, loans are difficult to get whether you live in Burnaby or anywhere else in Canada. So what should you do if you really need money? Maybe your credit cards are maxed out, your rent or mortgage payment is past due, and you need to pay your household bills. You may be trying to get any kind of online loan you can find, and you may be even contemplating payday loans. But in the back of your mind, you're honestly wondering how much these are really going to help you.
The truth probably is that you’re just down on your luck and you really don’t know of any better way to handle things right now than to try and get a loan for bad credit. So below we explain some things you can do to try and get a loan in Burnaby, BC when you’ve got a bad credit rating. However, if you’d rather find another way to deal with your debts (one that's typically far more effective), jump down to the last part of this article.
Personal Bad Credit Loans Have High Fees & Interest Rates
First, recognize that if you do manage to get a personal loan somewhere, it will be really expensive. Because a lot of people with bad credit often do not repay their debts, lenders see anyone with poor credit as a huge risk. So they charge fees upfront along with high interest rates so that when someone does default, they’ve already paid as much as the lender can get from them. Whether you like it or not, this is the way it’s usually done.
Can a Personal Loan Repair My Poor Credit Rating?
You should also know that taking out a bad credit personal loan - either secured or unsecured - will not fix your payment history. Your credit rating fell over a period of time, and it will take more time for it to recover. A brand new loan won't magically fix things. However, time and managing your money better will improve your poor credit rating and help it recover. That's one of the good aspects of the credit rating system in Canada - it's built to recognize that bad things sometimes happen to good people. So you're able to fix your credit without resorting to high fee and interest rate bad credit loans. Managing your money and situation better is most of what it takes.
Related: Click here to Learn How to Fix Your Credit Rating and Improve Poor Credit.
What's Needed to Obtain a Loan with Bad Credit - Income Proof, List of Assets, Monthly Expenses, Debts, & Credit History Questions
When you apply to a lender for a bad credit loan, be prepared with your financial information. They will want to know your monthly income from all sources, whether or not you own any assets you could give (pledge) as collateral (security) for the loan, and what your expenses are each month. You should also be ready to answer any questions they may have about your poor credit, debts, and payment history.
To verify your income: collect your pay stubs, government assistance payment information, alimony or child support records, bank account statements and/or tax returns with assessment notices.
If you own assets: jot down a list or make a mental note of what you own and the value of each item. It’s the valuable things that can be easily appraised and sold that matter - things like cars, trucks, trailers, boats, ATVs, motorcycles, or other vehicles. Antiques, heirlooms, jewellery, and coin or stamp collections can only be used to secure a loan if they are accompanied by an authentic, verifiable appraisal certificate. Electronics, tools, musical instruments, and valuable household goods can be sold or consigned at pawn shops, but they usually cannot be used to obtain a loan. However, at times some high interest lenders will ask people to pledge household goods or appliance as token security for a loan.
Work out your monthly expenses and debts: this is often the most difficult part for a lot of people. When you begin jotting them all down, you realize how much you spend and how much you actually owe. Start by writing down your housing expenses and utility bills. Then jot down what you spend on groceries, food, medication and other essential things. Make sure to include transportation costs and work-related expenses as well. If you find it a bit challenging to organize your expenses and remember all the different things you spend money on, this free budgeting calculator spreadsheet might really help. You can also learn a lot more about how to create a budget or spending plan in the budgeting section of our website.
To answer questions about your repayment history: take a look at your own credit report. You can get it for free from both Equifax and TransUnion Canada if you request it by phone. Here we tell you how to get them, help you understand what’s on your report, and explain the difference between the report and your credit score.
Better Ways to Resolve Debt and Money Problems Instead of Getting Bad Credit Loans
Shopping around for bad credit loans in Burnaby to get the money you need takes time and a lot of patience. And there’s no guarantee that when you find a lender, that they’ll give you the loan with terms and conditions you can afford. You probably already kind of know this. So if you want a better solution to your debt and money problems, here's the best thing you can do: contact a local non-profit credit counselling agency and make an appointment to speak with one of their Credit Counsellors. Appointments are usually free, completely confidential, and can be done in person or over the phone. They are experts in everything related to bad credit loans, getting out of debt, and unconventional ways of consolidating and getting rid of debt. They'll help you explore all your options - including little known debt relief options that most people have never heard of. Having this conversation will likely be the best thing you've done in years and can make all the difference in getting your finances back on track as soon as possible.