When you look at the statistics about debt in Manitoba, you might get the impression that the people there are in great financial health. And while some certainly are, the delinquencies in Manitoba are up by over 10%. This means lots of people are missing payments, which can have a serious and negative effect on their credit.
For some information about Canada’s Federal Debt Clock, look here.
While bad credit doesn’t always affect all aspects of your life, it can have a serious impact on your financial life. The health of your credit is sometimes one of the biggest factors in whether or not you’ll get approved for a loan in Manitoba, however, that doesn’t mean bad credit completely disqualifies you from getting the loan you need.
Do you know what the true cost of borrowing is? Check out this infographic.
What Bad Credit Loan Options Do You Have in Manitoba?
While you will qualify for a better and more affordable loan with good credit, you can still get a loan with bad credit in Manitoba. Whereas most people will go to a bank for a loan, someone with bad credit is better suited going to:
- A credit union
- An alternative lender
- A no credit check lender
- An online lender
In addition to choosing a less traditional lender in Manitoba, the type of loan someone with bad credit applies for should be catered to those with bad credit.
What do bad credit lenders examine when assessing loan eligibility? Find out here.
Most people in Manitoba simply go with an unsecured loan, but those with bad credit might not be able to qualify for one, but if they do, the interest rate will often be quite high.
Instead, those with bad credit in Manitoba should consider secured loans, which involved putting up an asset for collateral (such as your house or car) that the lender will get if you default. While this is risky for you, it will get you a better rate as the lender doesn’t need to take on as much risk.
For a better understanding of secured and unsecured credit, read this.
Consider a Cosigner
Asking a trusted friend or family member to cosign a loan for you is another great option for those with bad credit in Manitoba. A cosigner with good credit can allow you to gain access to the funds you need. Better yet your credit score will improve over time as you pay off the loan.
Credit Score Ranges in Canada
Now, unless you religiously check your credit report or score, you might not know what your credit score is. Even if you do, you might not know what that little three-digit number means. Well, in Canada, credit scores range from 300 on a low end, up to a perfect 900 on a high end.
The term “bad credit” isn’t set in stone, so different people and lenders might have different ideas. Generally, anything from 300-600 is considered bad, but as you can see, that is quite a range. If you fall into the “bad credit” territory, don’t worry, there are ways to improve.
How to Improve Your Credit in Manitoba
When it comes to improving your credit, there is a multitude of different things you can do.
Check Your Credit
All consumers in Manitoba are allowed one free copy of their credit report each year and you should take advantage of this. This report will give you information on your credit history, how many accounts you have open, any demerits you may have, and so much more.
Pay Down Debt
Paying off any outstanding debt or excessive consumer debt is not only in the best interest of your overall financial health, but it can help improve your credit over time. Going forward, make sure to pay your bills on time and use any credit cards you have responsibly.
Made a late payment? Here’s how to rebuild your credit.
Get Credit Monitoring
You can also pay for a credit monitoring service. This service will help you keep track of where your credit and alert you to any potential fraud issues.
Consider Professional Help in Manitoba
In addition to these financial behaviour-related changes, there are also some credit improvement products out there that can help. These include getting a secured credit card and entering into a credit rehab program, which will help you learn the necessary skills and tools to rebuild your credit.
For more information on your credit score, click here.
What’s the best way to increase my chances of getting a loan with bad credit?
Can I get a no credit check loan in Manitoba?
What are the effects of having a bad credit score?
Don’t Let Your Bad Credit Hold You Back
Dealing with bad credit can often feel like a daunting task and while it will take some work on your part to improve your credit, it is possible. There are many bad credit loan options out there for all consumer in Manitoba, get in contact with Loans Canada today to learn more.