Bad Credit Loans in New Brunswick
How to Get the Money You Need
When you have bad credit, loans are hard to get whether you live in New Brunswick 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 New Brunswick 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 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.
How to Get a Loan with Bad Credit in New Brunswick
Income Verification, List of Assets, Monthly Expenses, Debts & Credit Report Questions
When you approach lenders for a bad credit loan in New Brunswick, 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 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.
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 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.
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 New Brunswick 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 very low cost, 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.
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