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

	People with bad credit in Lethbridge can actually get help to avoid the fees, high interest, and payments of expensive 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, 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 vehicle needs to be repaired, you have an unexpected dentist bill, your pet needs to see the vet, you have to travel to see a sick relative, or something else along these lines. You are looking to rebuild your credit or increase your credit score. You’re wanting just one loan with one monthly payment. You’re hoping to find a more manageable payment by paying off your debt over a longer period of time, or your current interest rates are just too high.

When you have bad credit, loans are hard to get whether you live in Lethbridge 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 Lethbridge, Alberta 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 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.

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 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: create a list or make a mental note of the items you own and the value of each one. It’s really the big things that matter here, like cars, trucks, RVs, boats, motorcycles, ATVs, trailers, and other vehicles or items that can be easily appraised. Coin or stamp collections, jewellery, antiques and other heirlooms can only be used as collateral for a loan if they have been authenticated and valued with a verifiable appraisal certificate. Musical instruments, tools, electronics and other high priced household goods can be consigned at pawn shops or sold but usually cannot be used to get a loan. However, there are some high interest lenders who will ask you to pledge all your household goods or appliances 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 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 Lethbridge 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.