Bad Credit Loans in Nova Scotia - What to Do When You Need Money
|People with bad credit in Nova Scotia 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, 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 can be challenging to get whether you live in Nova Scotia 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 some difficult things recently, and right now you really aren't aware of a better way to handle things than to apply for a loan for bad credit. So to help you out, we explain some things below that you can do to try and obtain a loan in Nova Scotia when you have a bad credit rating. However, if you’re interested in finding another way to deal with your debts (one that is usually way more effective), scroll down to the last part of 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.
Is a Personal Loan Able to Fix 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.
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 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.
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 address concerns about your credit report: get a copy of yours and have a look. You can easily obtain one for free from both Equifax and TransUnion. Click here to see how to get a free copy, and if you're wondering how your credit report and score are created and what the difference is between the two, click here to learn more.
Better Solutions for Debt and Money Problems than Getting Bad Credit Loans
Shopping around for bad credit loans in Nova Scotia 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 very low cost, 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.