Bad credit loans are some of the most expensive ways to borrow money that you can find, and outside of a true emergency, it’s easy to start thinking that there is never a good reason to use them. That may not always be true. There are occasions when using bad credit loans to buy something is not only perfectly justified, but maybe even a good idea. We’ll elaborate more on this below.
How Are Bad Credit Loans Different?
Everyone is familiar with the concept of a normal loan: you borrow some money from a lender, then pay it back over time with the addition of some interest to compensate them for their trouble. Bad credit loans are largely the same with the exception of one factor, the one that’s listed right in the name. Anyone looking for one has bad experiences with credit in the past and in some way failed to live up to their part of the bargain, resulting in a bad credit score. Now the evidence of their risky behaviour is clear to see, and it’s hard for any standard lenders to justify taking the risk of lending to them.
Bad credit loans are the ones that will still accept borrowers who have bad credit. In exchange for this show of good faith, however, they are usually much more strict with you. Their interest rates are much higher and their lenience for unpaid balances is much less forgiving. Taking one of these loans will almost always be a very expensive option, so it’s not something you want to do on a whim. It should always be a very carefully considered choice.
So What Are Some Sensible Bad Credit Loan Purchases?
Just because bad credit loans are expensive doesn’t mean there’s never an occasion to use them. The following 6 items are just some of the things that most people would agree fall into that category.
Having a car makes so many things possible that might not be options for you without such a convenient transportation method available. Whether that means shopping at cheaper stores, getting a better job or dropping your kid off for some free child care at your retired parents’ house, being able to get out and take advantage of opportunities like that can make your life so much easier (and more affordable too).
Even if you’ve been getting by all right with just public transportation to help you around, you would still probably be better off with a car of your own. If getting a bad credit loan means you can get one when you wouldn’t be able to otherwise, it’s perfectly reasonable to do that and get yourself that vehicle. As long as you keep the costs as low as reasonably possible, it’s likely that over time it will end up paying for itself even with the extra loan expenses accounted for.
If you don’t currently have a working personal computer, one of the best things that you can buy with your loan money is a laptop. They don’t cost too much money these days outside of the truly high-end options, and for that money you get a device that can be used to do everything from looking up recipes to pursuing hobbies to streaming content to learning new things. You can use it to stream entertainment and replace your TV if you’re currently paying for cable. You can even pick up some freelance work with a laptop and bump your income up a little higher.
A laptop isn’t just a single-use item, and that’s what makes it such a critical item in many people’s lives. As long as you can connect it to the internet, the possibilities of what it can do are nearly limitless. The expense it represents is nowhere near as significant as the utility that it offers you. You get tremendous value for the money you put out, so for that reason, getting that money through a somewhat expensive loan isn’t the worst idea ever. You’ll get more than enough use out of it to justify the cost.
A Fridge, Oven or Other Appliance
If you’ve never had to go without a means of cooking, storing your food, washing your clothes, or any other basic household function, you might be surprised at how debilitating it is when it actually happens to you. This unfortunate event restricts your ability to perform the basic functions of everyday life. Not only will it take you longer to get finished with everything you need to do each day, but it may also cause you some social or interpersonal strife if things start to pile up and you become visibly strained.
If you find yourself in this situation, getting a bad credit loan to pay for a new large appliance is more than worth the expense. Everyone deserves to feel comfortable in their own home and have all the amenities of a moden nation available to them. These purchases also usually last for many years, so as long as you’ve made your selection carefully, they should continue to serve you well for a long time to come. You can also buy them lightly used in order to save even more on the purchase price and not have as much to pay back on that high-interest loan.
A Game Console
You can get hours and hours of entertainment out of a game console; it’s arguably the best entertainment investment you could make aside from maybe a laptop (as we mentioned above). Once you have one, you do still have to buy the actual video games for it, but you can get them second-hand for next to nothing if you look for them. Each one will last you several dozen hours on average and can be replayed as often as you want, not to mention
Again, in terms of cost per hour of use, this purchase will likely end up costing you only pennies. This one might be a particularly good idea if you’re trying to entertain children for a low cost, since they probably won’t want to do much other than play when they have a new game console in their hands. It isn’t a necessary expense per se, but it’s still an excellent investment.
Anything Your Kids Need For School
If your child needs anything that has to do with their schooling (be it books, a computer, a particular program, or even tuition fees), it may be worth tapping into bad credit loans to get it. Education is always an investment, even if you don’t necessarily expect it to pay off monetarily in the future. Each child only stays in development for so long, and the quality of the intellectual stimulation they receive at that time can have a huge impact on who they end up becoming as they mature into teenagers and finally into adults.
People with better, more well-rounded educations are usually better-equipped to deal with most things in life, and they also tend to earn more even if they haven’t undergone any job-specific training to give them the skills they would need to make themselves obviously valuable to their employers. Giving your child an educational advantage while they’re young is one of the best things you can do for them, and for some people, that’s worth any cost.
Anything Else You Think Would Be Useful To You
Just because the thing you were thinking of buying hasn’t appeared on this list doesn’t mean it isn’t a good idea to borrow to get it. In the end, you know your own needs better than anyone else ever will. If you think something is worth taking out a loan to purchase, that’s probably correct, at least in your case. Don’t doubt your own judgement on this matter – if you think a particular thing qualifies, it probably does, and don’t let anyone tell you differently.
We’ve Got Offers For Bad Credit Loans Waiting For You
No matter what you plan to buy with your bad credit loans, you’ll obviously need to get some first. Doing that isn’t always an easy task, but that will be different with Bonsai Finance here to show you the way. We’ve worked with dozens of different Canadian lenders over the years, and we’ve built you an online tool you can use to get more information about what each of them can do for you. Once you know enough to make a decision, you can apply for the loan you chose right on the spot. You could be done with the whole thing in less time than it will take to go to the dealership or store and make your intended purchase. If you need to make a smart loan choice but don’t have a lot of time to do it, we’re easily your best bet to get that done, and we’re happy to help. Don’t let any shady, potentially fraudulent lenders try to talk you into getting bad credit loans with them – we’ll make sure you come out of this with the loan you need while still putting your long-term financial health first.