Can I Really Get a Loan When My Credit is Poor?


Advice / Thursday, December 17th, 2020

You never intended for things to work out this way, but your credit is in terrible condition. It may be due to a divorce, a reversal in fortune after a job loss, or a number of other issues. Whatever has occurred in the past, there is hope. While some lenders won’t touch you, there are bad credit lenders who are happy to work with just about anyone. Here are some examples of how you could put a Toronto personal loan of this type to good use.

Help With Unexpected Expenses

Not everyone that happens is covered in the household budget. For example, you didn’t expect the engine in your car to break down. Fortunately, it can be rebuilt rather than having to replace it. Even so, the expense is more than you can handle right now.

This is where a bad credit loan can come to the rescue. Borrow the money needed to have the engine rebuilt. You get back on the road faster and can pay off the balance with monthly installments that are easy to manage. Everyone wins.

Treating Yourself to a Long Weekend Away

When was the last time you got away for a few days? You have the chance to take a long weekend trip with a close friend, but the money’s just not there. Instead of passing on the trip, take out a bad credit loan and go. The time away will do you good and the loan can be repaid over the course of the next few months. Best of all, you’ll feel more rested and refreshed when you return home.

Buying Something You Need While the Price is Lower

There’s something you’ve wanted for the house but it’s not feasible financially. At least you thought that was true until you came across the very item that you want on sale for a ridiculously low price. Even then, it’s still a little more than you can scrape up. Instead of passing on this opportunity, take out a bad credit loan.

In the long run, you save money while ending up with something that you’ve needed for some time. Best of all, you build rapport with the lender. Should you need another loan in the future, you know where to start looking.

Rebuilding Your Credit After Completing Bankruptcy

Going through bankruptcy was one of the hardest things that you’ve ever done. Now that the court has discharged the debt, it’s time to think about rebuilding your credit. While knowing that it will take time, obtaining a bankruptcy loan is a great way to get started.

The lender provides the funding and you make all the payments on time. That leads to more positive comments on your credit reports that gradually dilute the impact of the negative ones built up prior to the bankruptcy. While the loan won’t make everything fine all by itself, it’s an excellent way to start repairing your damaged credit and slowly get to a better place.

Don’t assume that poor credit automatically means no lender will work with you. There are alternative and private lenders who are happy to consider your application. Talk with a broker who works with these types of lenders and see what can be worked out. You may be surprised at how quickly the application is approved.

 

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