Bad Credit Loans in Halifax - How to Get the Money You Need
|People in Halifax can actually get help to avoid the fees, high interest, and payments of expensive bad credit personal loans.
The Real 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 really important that you first ask yourself a question. Why do I need this loan? Click on your answer below to take a look and see if there may be better options for you:
When you have bad credit, loans are hard to get whether you live in Halifax or anywhere else in Canada. So what can you do if you need money? Maybe your rent or mortgage payment is way overdue, your credit cards are maxed and you owe money on all of your household bills. Maybe you are considering or have tried payday loans or online loans, but you're honestly wondering if that's 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 Halifax, Nova Scotia 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
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.
Is a Personal Loan Able to Fix My Poor Credit Rating?
You should also recognize that getting a bad credit personal loan - whether it's secured or unsecured - won’t fix your payment history. It took time for your credit rating to fall, and it will take a lot longer for it to go up again. One loan won’t magically fix it; however, time and managing your money better will help your poor credit rating recover. That’s the great thing about the credit rating system in Canada - it recognizes that bad things can happen to good people. So you can fix your credit and avoid personal loans with high fees and bad credit interest rates by managing your money and situation better.
How to Get a Loan with Bad Credit - Income Verification, List of Assets, Monthly Expenses, Debts & Credit Report 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 show your income: gather together things like pay stubs, child support or alimony records, government assistance or child benefit payment details, bank 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.
Outlining your monthly expenses and debts: this is the hardest part for most people. When you start listing them all out, you see how much you spend and how much you owe. Start by jotting down your housing costs and related utility bills. Then groceries, food, medication and other essentials. Include transportation and work-related costs as well. If you have a lot of different expenses and debts and don’t quite know how to organize them, this Excel budget calculator might help. You can also learn much more about how to create a budget or spending plan on our budgeting page.
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 Solve Debt and Money Problems than Getting Bad Credit Loans
Looking around for bad credit loans in Halifax 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 very low cost, 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.