Bad Credit Loans in Charlottetown - What to Do When You Need Money
|People with bad credit in Charlottetown can actually get help to avoid the fees, high interest, and payments of expensive personal loans.
The Real 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:
When you have bad credit, loans can be challenging to get whether you live in Charlottetown or anywhere else in Canada. So if you need money, what can you do? Maybe you're struggling to make your rent or mortgage payment, you've got household bills to pay, and your credit cards are maxed out. You may have tried looking for online loans and are now contemplating - or have tried - payday loans. But honestly, in the back of your mind you're wondering if any of these are really going to help improve your financial situation.
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 Charlottetown, Prince Edward Island 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 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 also need to be aware that obtaining a bad credit personal loan - be it secured or unsecured - won't repair your payment history. Your credit rating didn't fall overnight. It took time, and it will take even more time for it to go back up again. A new loan won't magically fix the problem; however, managing your money better - over time - will improve your poor credit rating. That's one of the good things about Canada's credit rating system - it recognizes that bad things happen to good people. So it's possible to repair your credit without using personal loans with high bad credit interest rates and fees.
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: 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.
Jotting down your debts & monthly expenses: this can often be the toughest part for most people. When you begin listing everything out, you realize how much you owe and how much you spend. Begin by writing down your housing costs and home utility bills. Then list the essentials such as food, groceries, and medication. Also include transportation expenses and work-related costs too. If you find it a bit tricky to remember all your different expenses or debts and aren't sure of the best way to organize them, we have a great budget calculator that lists and organizes everything and guides you as you create your budget and does all the number crunching for you. You can access if for free here. You can also learn a whole lot more about budgeting here.
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
Shopping around for bad credit loans in Charlottetown 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 very low cost, 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.