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

	In Markham, people with bad credit can actually get help to avoid the high interest, fees, and payments associated with expensive personal loans.
		The Really 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, 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 are difficult to get whether you live in Markham 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 Markham, Ontario 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

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 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.

What's Needed to Obtain a Loan with Bad Credit - Income Proof, List of Assets, Monthly Expenses, Debts, & Credit History 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 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.

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 Ways to Resolve Debt and Money Problems Instead of Getting Bad Credit Loans

Shopping around for bad credit loans in Markham 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.