Bad Credit Loans in Manitoba - What to Do When You Need Money

	People with bad credit in Manitoba can actually get help to avoid the fees, high interest, and payments of expensive personal loans.
		The Most Important Question Why do you need a bad credit personal loan? Depending on your answer, you may actually have other options that can resolve your debt problems, re-establish your credit, and get your finances back on 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: This is for an emergency. Your vehicle needs to be repaired, you have an unexpected dentist bill, your pet needs to see the vet, you have to travel to see a sick relative, or something else along these lines. You are looking to rebuild your credit or increase your credit score. You're wanting just one loan with one monthly payment. You’re hoping to find a more manageable payment by paying off your debt over a longer period of time, or your current interest rates are just too high.

When you have bad credit, loans are difficult to get whether you live in Manitoba 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 Manitoba 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?

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: How to Repair Your Credit Score and Improve Bad Credit.

Things You'll Need to Get a Loan with Bad Credit - Proof of Income, List of Assets, Monthly Expenses, Debts & Credit Report Questions

When you approach lenders for a bad credit loan, come prepared with your financial information. They will want to know how much you earn each month from all sources, if you have any assets that you could give (pledge) as security (collateral), and what your monthly expenses are. You should also be able to answer any questions they might have about your poor credit and debts.

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 have assets: create a list or make a mental note of the items you own and the value of each one. It’s really the big things that matter here, like cars, trucks, RVs, boats, motorcycles, ATVs, trailers, and other vehicles or items that can be easily appraised. Coin or stamp collections, jewellery, antiques and other heirlooms can only be used as collateral for a loan if they have been authenticated and valued with a verifiable appraisal certificate. Musical instruments, tools, electronics and other high priced household goods can be consigned at pawn shops or sold but usually cannot be used to get a loan. However, there are some high interest lenders who will ask you to pledge all your household goods or appliances 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 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

Shopping around for bad credit loans in Manitoba 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.

Winnipeg | Brandon