Bad Credit Loans in Vancouver - What to Do When You Need Money
|People with bad credit in Vancouver can actually get help to avoid the fees, high interest, and payments of expensive personal loans.|
The Most Important Question
Why are you looking for a bad credit personal loan? Depending on your reasons, you might actually have other options available to you that can resolve your debt problems, repair your credit, and get your finances back on 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 can be challenging to get whether you live in Vancouver or anywhere else in Canada. So if you need money, what can you do? Maybe you're struggling to make your rent or mortgage payment, you've got household bills to pay, and your credit cards are maxed out. You may have tried looking for online loans and are now contemplating - or have tried - payday loans. But honestly, in the back of your mind you're wondering if any of these are really going to help improve your financial situation.
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 Vancouver, 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 Personal Bad Credit Loans Have High Interest Rates & Fees
The first thing you need to recognize with a bad credit personal loan is that it will be really expensive. This is due to the simple reality that many times people with bad credit do not fully pay their debts. Because of this, lenders see anyone with poor credit as a significant risk. So they charge high interest rates and often fees upfront so that if someone defaults on their payments, the lender has already gotten a lot out of them. Unfortunately, whether you like it or not, this is the way the way things are.
Will a Personal Loan 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 for a bad credit loan, it's best to be prepared with your financial information. A lender will want to know your income and what you earn each month from all sources. They'll want to know if you have any assets you could offer (pledge) as security (collateral). They may want to know what your monthly expenses are too. You should also be prepared to answer any questions they might have about your debts, poor credit, 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.
Jotting down your debts & monthly expenses: this can often be the toughest part for most people. When you begin listing everything out, you realize how much you owe and how much you spend. Begin by writing down your housing costs and home utility bills. Then list the essentials such as food, groceries, and medication. Also include transportation expenses and work-related costs too. If you find it a bit tricky to remember all your different expenses or debts and aren't sure of the best way to organize them, we have a great budget calculator that lists and organizes everything and guides you as you create your budget and does all the number crunching for you. You can access if for free here. You can also learn a whole lot more about budgeting here.
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
Looking around for bad credit loans in Vancouver to find the money you need can take a lot of time and patience. In the end, there’s no guarantee that when you find a lender they’ll lend you money on terms you can afford. You may already kind of suspect this. If you want better options to your debt and money problems that you can afford, here's the best thing to do: contact a local not-for-profit credit counselling organization and make an appointment to talk with a Credit Counsellor. Appointments are typically free, completely confidential, and can usually be done either in person or over the phone. These people are most often experts in everything relating to bad credit loans and creative and unusual ways of consolidating and getting rid of debt. They can help you look into all your options - including debt relief and consolidation options that most people don't know anything about. Having this conversation will most likely be one of the best things you've done in years and can make a huge difference in getting your finances back on track as quickly as possible.