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

	People with bad credit in Niagara Falls can actually get help to avoid the fees, high interest, and payments of expensive 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, 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 Niagara Falls 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 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 Niagara Falls, 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.

Why do Bad Credit Personal Loans Have High Fees and Interests 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 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.

What's Needed to Obtain a Loan with Bad Credit - Income Proof, List of Assets, Monthly Expenses, Debts, & Credit History 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 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 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 Ways to Resolve Debt and Money Problems Instead of Getting Bad Credit Loans

Looking around for bad credit loans in Niagara Falls 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.