Bad Credit Loans in Peterborough – What to Do When You Need Money

	People in Peterborough can actually get help to avoid the fees, high interest, and payments of expensive bad credit personal loans.
		The Really 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, 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 for an emergency. Your car needs to be fixed, your pet is sick, you have a large dentist bill, you need to travel to see a sick relative, or something else like this. You would like to rebuild your credit or improve your credit score. You are looking for just one loan with one payment. You’re hoping to work out a more affordable payment by paying off your debt over a longer time period, or your existing interest rates are too high.

When you have bad credit, loans can be challenging to get whether you live in Peterborough 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’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 Peterborough, 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.

Personal Bad Credit Loans Have High Fees & Interest 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.

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 Fix Your Credit Rating and Improve Poor 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 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 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 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 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

Trying to get the money you need by shopping around for bad credit loans in Peterborough 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.