Bad Credit Loans in North Bay, Ontario – What to Do When You Need Money

	People with bad credit in North Bay 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: 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 are hard to get whether you live in North 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 North 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 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.

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.

Related: Click here to Learn 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 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.

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 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 North Bay 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.