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

	In Oshawa, 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 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, 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 an emergency. You have a big dentist bill, your pet is sick, your vehicle needs to be fixed, you have to travel to see a sick relative, or something else that's similar to this. You would like to improve your credit score or rebuild your credit You'd like to have just one loan with one payment each month. Your current interest rates are too high, and/or you’d like to work out a more affordable payment by stretching out your debt payments over a longer time period.

When you have bad credit, loans are difficult to get whether you live in Oshawa 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’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 Oshawa, Ontario 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.

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.

Can a Personal Loan Repair 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 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 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 own assets: jot down a list or make a mental note of what you own and the value of each item. It’s the valuable things that can be easily appraised and sold that matter - things like cars, trucks, trailers, boats, ATVs, motorcycles, or other vehicles. Antiques, heirlooms, jewellery, and coin or stamp collections can only be used to secure a loan if they are accompanied by an authentic, verifiable appraisal certificate. Electronics, tools, musical instruments, and valuable household goods can be sold or consigned at pawn shops, but they usually cannot be used to obtain a loan. However, at times some high interest lenders will ask people to pledge household goods or appliance 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 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 Resolve Debt and Money Problems Instead of Getting Bad Credit Loans

Looking around for bad credit loans in Oshawa 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.