The holidays are fast approaching, and for many of us that means weeks of increased spending. The gifts, the parties, the food – these things all add up and if you’re strapped for cash, you may just be cringing at the thought. Perhaps a personal loan is the perfect solution to your holiday woes.
There are many options for those with good credit, but if you have bad credit it is often far more difficult. Traditional banks are far less willing to offer loans to those with bad credit – their lending guidelines are too strict to allow this – and so most in this situation will turn to other means – some good, some not so good.
Buyer beware: If you are not careful you can end up with a very expensive personal loan or one that doesn’t rebuild credit – or both!
Payday loans are a prime example. They do not report to your credit, and the fees are sky high. They are not meant to be long term, and when your lending period is up, if you can’t repay the loan, you end up digging yourself into a hole that will be very difficult to get out of. These loans don’t make sense at all. Several provincial governments are making moves to limit payday lenders in response to their predatory lending tactics, so that should be a good indicator that these types of loans are all kinds of terrible!
Many finance companies like Easy Financial and Money Mart may help some individuals with slightly bruised credit, but if you are an undischarged bankrupt or in a consumer proposal, they will not help you. As you may already know, the worse your credit is, the fewer options you have at your disposal.
The key is to find the right balance between convenience and affordability, coupled with the help of an organization that believes in second chances.
Tips:
- Make sure the loan reports to your credit report. This is a great way to improve your credit.
- Borrow only what you can comfortably repay – otherwise you will just be setting yourself up for failure and damaging your credit even further.
- Deal with a company that specializes in helping people in your situation and that understands your needs.
At Prudent Financial, we understand that money is tough. If you’re dealing with the knowledge that your bank account just won’t stand up to the holidays this year, get in touch with us to find out more about the various personal loans we offer. 1-888-852-7647.