Bad Credit Loans in Thunder Bay - How to Get the Money You Need

	In Thunder Bay, people with bad credit can actually get help to avoid the high interest, fees, and payments associated with expensive personal loans.
		The Real 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: 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 hard to get whether you live in Thunder Bay or anywhere else in Canada. So what can you do if you need money? Maybe your rent or mortgage payment is way overdue, your credit cards are maxed and you owe money on all of your household bills. Maybe you are considering or have tried payday loans or online loans, but you're honestly wondering if that's 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 Thunder Bay, 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 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: Click here to Learn How to Fix Your Credit Rating and Improve Poor 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 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.

Outlining your monthly expenses and debts: this is the hardest part for most people. When you start listing them all out, you see how much you spend and how much you owe. Start by jotting down your housing costs and related utility bills. Then groceries, food, medication and other essentials. Include transportation and work-related costs as well. If you have a lot of different expenses and debts and don’t quite know how to organize them, this Excel budget calculator might help. You can also learn much more about how to create a budget or spending plan on our budgeting page.

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 Thunder Bay 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.