Bad Credit Loans in Kamloops, BC - What to Do When You Need Money
|People with bad credit in Kamloops 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 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, the first thing you need to ask yourself is, "Why do I need this loan?" Click on your answer below to see if there are better options for you:
When you have bad credit, loans are difficult to get whether you live in Kamloops 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've gone through a rough patch recently, you feel like you're out of options, and you really don’t know of a better way to handle things right now other than to try and get a loan for bad credit. So below we explain some steps you can take to try and get a loan in Kamloops, BC when you’re saddled with a bad credit rating. However, if you would much rather find another way of dealing with your debts (one that's very often far more effective), jump down to the last section in this article.
Why do Bad Credit Personal Loans Have High Fees and Interests Rates?
The first thing you need to be aware of with bad credit personal loans is that they are very expensive. The reason for this is due to the fact that people with poor credit default on their loan payments far more often than those with good credit. So lenders view anyone with poor credit as a big risk. Because of this, they charge high interest rates and upfront fees to compensate for their higher losses and to ensure they get the most out of someone before they default on their payments. This may not be fair, but that's often the way it's done.
Is a Personal Loan Able to Fix My Poor Credit Rating?
You also need to be aware that obtaining a bad credit personal loan - be it secured or unsecured - won't repair your payment history. Your credit rating didn't fall overnight. It took time, and it will take even more time for it to go back up again. A new loan won't magically fix the problem; however, managing your money better - over time - will improve your poor credit rating. That's one of the good things about Canada's credit rating system - it recognizes that bad things happen to good people. So it's possible to repair your credit without using personal loans with high bad credit interest rates and fees.
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 prove your income: gather your pay stubs, alimony or child support records, government assistance payment details, bank account statements and/or tax returns with assessment notices.
If you have assets: bring a list of what you own and what each item is worth. It’s the big things that matter, like cars, trucks, boats, ATVs, motorcycles, trailers, and other vehicles and items that can be appraised. Jewellery, coin or stamp collections, antiques and other heirlooms can only be used as collateral for a loan if they have an authentic, verifiable appraisal certificate to accompany them. Tools, musical instruments, electronics and other expensive household goods can be sold or consigned at pawn shops but can’t typically be used to get a loan. However, some high interest lenders will have people pledge them as token security.
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 find answers to questions about your credit report: take a look at your own. You can get a free copy from both TransUnion and Equifax if you request it over the phone. Here are instructions on how to get your credit report for free, and here you can learn how your report is created and the difference between your credit report and your credit score.
Better Solutions for Debt and Money Problems than Getting Bad Credit Loans
Trying to get the money you need by shopping around for bad credit loans in Kamloops takes a lot of time and patience. At the end of the day, there’s no guarantee that when you find someone who will lend you the money, that they will offer you a loan with terms and conditions you can afford. It's likely that you already kind of know this. So if you really want something that's going to solve your debt and money problems, here is the single best thing you can do: call a local non-profit credit counselling service and book an appointment to discuss your situation with one of their Credit Counsellors. Appointments with non-profit Credit Counsellors are usually free of charge, completely confidential, and can happen either in person or over the phone. These guys are typically experts in everything that relates to bad credit loans, consolidating, and dealing with debt. They help people explore all their options - including debt relief and consolidation options that most are unaware of. Having a conversation like this could quite possibly be the best thing you've done in years and can make a world of difference in helping you get your finances back on the right track as soon as possible.