Bad Credit Loans in St. Catharines - How to Find the Money You Need
|People in St. Catharines can actually get help to avoid the fees, high interest, and payments of expensive bad credit personal loans.|
The Most 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, 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:
When you have bad credit, loans are difficult to get whether you live in St. Catharines 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 St. Catharines, 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 be aware of with bad credit personal loans is that they are very expensive. The reason for this is due to the fact that people with poor credit default on their loan payments far more often than those with good credit. So lenders view anyone with poor credit as a big risk. Because of this, they charge high interest rates and upfront fees to compensate for their higher losses and to ensure they get the most out of someone before they default on their payments. This may not be fair, but that's often the way it's done.
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 Fix Your Credit Rating and Improve Poor Credit.
How to Get a Loan with Bad Credit - Income Verification, List of Assets, Monthly Expenses, Debts & Credit Report 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 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 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 Solve Debt and Money Problems than Getting Bad Credit Loans
Trying to get the money you need by shopping around for bad credit loans in St. Catharines takes a lot of time and patience. At the end of the day, there’s no guarantee that when you find someone who will lend you the money, that they will offer you a loan with terms and conditions you can afford. It's likely that you already kind of know this. So if you really want something that's going to solve your debt and money problems, here is the single best thing you can do: call a local non-profit credit counselling service and book an appointment to discuss your situation with one of their Credit Counsellors. Appointments with non-profit Credit Counsellors are usually free of charge, completely confidential, and can happen either in person or over the phone. These guys are typically experts in everything that relates to bad credit loans, consolidating, and dealing with debt. They help people explore all their options - including debt relief and consolidation options that most are unaware of. Having a conversation like this could quite possibly be the best thing you've done in years and can make a world of difference in helping you get your finances back on the right track as soon as possible.