Bad Credit Loans

What is a bad credit?

When someone is said to have a bad credit, it means that they have had difficulty paying back a loan in the past, consequentially pulling down their credit score. Bad credit suggests that a borrower has a low credit score. Late payments, missing out on payments, maxing out a credit card and bankruptcy all contribute to a low credit score and bad credit. Generally, a score between 300-630 is considered to be bad.

When you have a bad credit history, loans are difficult to get in Canada, regardless of where you stay in Canada or how long you have stayed.
What documents do I need to get a bad credit loan?

When you have a poor credit history, and you wish to get a bad credit loan from banks and other financial institutions, come prepared with your financial information. They would like to dive into your financial history: your monthly income, including the ones from your side gibs, your expenses, assets that can be used as collateral, in case there is a breach in contract and agreement on your part. Be also ready to answer questions that might relate to your poor credit cards and debts.

Having said all these, here are necessary documents you need to have to be eligible for a bad credit loan.
• Income proof: At this point, you have to be as transparent as possible. Present all your pay stubs, alimony or child support program documents, government assistance payment details, bank account statement, tax returns with assessment notices.
• Assets: Create a list for this, and if you have an off hand knowledge of the things you own and possess, here’s the point where you get to declare the valuables you have. These include the big things that matter and are worthy. Your cars, trailers, motorcycle, boats, RVs and other vehicles that can be appraised. Jewellery, antiques and other heirlooms can also be used as collateral for a bad credit loan, if they have been appraised and authenticated. Household appliances, musical instruments and other high priced item can be sold, but can’t be used to get a loan.
• Monthly expenses:Creditors are also interested in how you spend your money. For people who have a monthly budget, preparing this spending list won’t pose a problem, but for other people who don’t do this, jotting down your household expenses and utility bills might be a bit difficult. However, you can start with the indispensable expenses like: food, groceries, food, medications, transportation costs, work related expenses and other essentials and miscellaneous expenses. If you find this strenuous and challenging which is normal, because it might be impossible to leave out something you spend on in a month, you can use a budgeting spreadsheet calculator.
• Credit history and debt related questions: Questions related to your bad credit and debts can be raised by your creditors, so you might need a credit report that tells them about your financial history and information.
Bad credit loans can actually come with high interest rates. In your quest for getting out of your financial mess, well, because you think you are out of options and bad credit loans are the fastest way, be careful. Bad credit loans are great, but in your desperation, make sure you understand the terms and conditions attached to what you are getting.

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