Bad Credit Loans in Prince Edward Island
How to Find the Money You Need
When you have bad credit, loans are hard to get whether you live in Prince Edward Island 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 Prince Edward Island 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 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.
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 PEI
Income Verification, List of Assets, Monthly Expenses, Debts & Credit Report Questions
When you apply to a lender for a bad credit loan in PEI, 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 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.
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 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, 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.
Better Solutions for Debt and Money Problems than Getting Bad Credit Loans in PEI
Shopping around for bad credit loans in Prince Edward Island 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.
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