In Canada, every where you turn you need credit for some reason or another. It can be to finance a car or get a loan of some sort. When you have a bad credit, it might seem like this hurdle is insurmountable for you. There are solutions in the the way of getting secured credit for bad credit.
What it means to have Bad Credit
- You have a credit score that is below the normal ranking.
- There have been payments and loans that you have defaulted on paying.
- You have things in collections or threats of collections.
- There have been garnishments placed on your wages.
There are so many reasons you might have had financial difficulties in the past that have negatively affected your credit score. The reasons can be because of a divorce or a huge life change that happened. It could also be because of a lost job or a change in your financial situation that you were unprepared for. There is also the possibility that there were some payments that were due at the same time and you had to choose which ones got paid and which ones didn’t. The reasons are numerous and there is no need to justify this. Life happens and difficulties come with it that can impact your overall financial well being.
What is secured credit for bad credit?
This is when you get a loan that will help you to establish a healthy and positive report on your credit history. This type of loan is often one that you will get, but you will pay it off before the money gets deposited to you. As it is similar to a loan, there will be monthly reports to the credit bureau that will help to improve your overall credit score by giving you a healthy means of establishing positive credit.
There is a set way that secured credit for bad credit works. It is a way of establishing the credit you need to be able to qualify for any form of loan.
How it works
- You get offered a “credit amount” in the form of a secured loan.
- Then you will start making monthly or bi-monthly payments depending on your payment schedule.
- The payments are catered to what you can afford.
- You make the payments until the “loan” is paid off.
- Once the loan is paid in full, they will deposit the amount you were initially approved for into your bank account minus the interest.
It does seem redundant to pay for money you haven’t yet received, yet it is a great way of putting yourself on the path to a more secure financial future.
What are the criteria?
- Be 18 years or older.
- Have a credit history that is very poor.
- Have an active bank account that payments can be withdrawn from.
- A verifiable source of income.
When looking for secured credit for bad credit, there are a variety of lenders who offer this service. They are designed to help you to re-establish your credit ranking after a financial blow that brought your overall credit score down significantly. Secured credit is a way that is of no risk to either you or the lender.
Here are Bonsai Finance, we are determined to help you re-establish your financial credibility. We understand that things happen and that there are difficulties that can arise from unexpected issues. Our team of experts can help you to find the secured credit for bad credit that will suit your needs and help you to establish a more secure financial future.
Other ways Bonsai Finance can help:
- We do the leg work for you. This means that we will scour to find the lenders that offer the best terms and the most value for you.
- You will be presented with only reputable lenders and options that can help you through your financial difficulties.
- There will be clear communications regarding the terms and conditions of secured credit for bad credit. You will have full transparency in the fine details.
- We will go through the various lenders with you and provide recommendations based on what your current needs are.
- You will have the help you need to to go through the application process. This will make it easier and less stressful for you.
- Everything regarding the secured credit for bad credit will be explained to you in complete detail so that you are clear on what is being done and how it will impact you.
You don’t need to think that you will never be able to re-establish your credit because you can’t get any form of credit to establish it with. The option of secured credit for bad credit is there for you. You can think of it like putting away savings that will provide you with a payout at the end of the term.
Each secured credit for bad credit method is designed to help you according to what your current needs may be. You will find that establishing your credit after it has been damaged is easier than you originally thought possible. As each payment is reported to the credit bureau, you will be able to see every month how your credit image will be improving considerably with each payment you make.
Let our team at Bonsai Finance help you find the right secured credit for bad credit that you need to put you on the path to a more secure financial future. You will quickly find out how easy it is to get back on your feet and soon you will be qualifying for unsecured modes of credit to keep you on a good financial path. We are here to help you get started when you are ready.