Bad Credit Loans in Kitchener - How to Find the Money You Need

	People in Kitchener can actually get help to avoid the fees, high interest, and payments of expensive bad credit 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: This is for an emergency. Your car needs to be fixed, your pet is sick, you have a large dentist bill, you need to travel to see a sick relative, or something else like this. You would like to rebuild your credit or improve your credit score. You are looking for just one loan with one payment. You’re hoping to work out a more affordable payment by paying off your debt over a longer time period, or your existing interest rates are too high.

When you have bad credit, loans can be challenging to get whether you live in Kitchener 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 Kitchener, Ontario 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.

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.

Will a Personal Loan 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.

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 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.

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

Looking around for bad credit loans in Kitchener 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.