Whether or not you are currently in a bad credit situation, emergency expenses happen to all of us at one stage of our lives. Sometimes we’re prepared for them and other times we’re not. Most of us who live in Vancouver will admit it’s not the cheapest place to live in Canada. As Vancouver has grown as one of the best places to live in the world, it’s got increasing expensive making it hard for many of us average earners to pay our bills.
This situation has created a rise in the number of people who have bad or poor credit in Vancouver. Then, when an emergency such as an unforeseen car repair or something to do with our health crops up, we don’t know how we’ll be able to afford it. Luckily, in line with more people being in a bad credit situation, there has also been growth in the number of alternative lenders across Vancouver.
So, what would you do if all of a sudden you needed $2,000 even with bad credit? Here are 4 avenues you could take to help you secure those funds in Vancouver and to work out a plan of paying it back in a reasonable amount of time:
#1 – Your existing bank or credit union
This is always a good first stop to obtain credit and to find out how attractive you are as a borrower. Even if you’ve checked your credit report and you know you’re in the bad or poor category, banks may take more into account when providing you with a loan. If you’ve been a loyal customer over the years and they have a record of historical positive periods of credit, they may look to that more than your recent history. Your credit score does take into account your overall history and behaviour, however, it is fairly prescriptive and doesn’t take into account other aspects of your life that may have caused your credit rating to decline – such as an illness, divorce or the death of a loved one. Since you can sit down with a banker face-to-face they can see if there are any options available to you after looking at your full story.
#2 – Credit counsellors
While a credit counselling agency in Vancouver won’t be able to give you a loan, they can provide you with some referrals that you may not get anywhere else. Although the purpose of a credit counsellor is to reduce your level of credit, they may be able to help you find ways to consolidate your existing debt so you can free up capital that you may be using right now to pay off interest. By consolidating your debt, you will likely reduce your overall payments monthly and it will enable you to minimize the number of payments you’re making, saving you time and stress. Credit counsellors in Vancouver are well-versed in providing individuals with alternatives that can help them not only free up some cash for emergency situations but also empower them to improve their rating over time.
#3 – Friends or family – loans and co-signers
If you desperately need a $2,000 loan in Vancouver, one of the easiest ways to arrange this – especially in an emergency – is to ask a friend or family member to help you out. Although not the easiest thing to do emotionally, it may be the best route if you are in need of some funds fast. Also, if you can’t find a friend or family member who can provide the $2,000 to you, they could also act as a co-signer if they have a much better credit score than you do. If you fail to make your payments on time, the co-signer would be liable for the amount but if you do pay it off on time, it would have no real impact on their finances whatsoever.
#4 – Other lending institutions
These days there are a number of places to obtain short-term or medium-term loans in Vancouver. $2,000 isn’t pocket money but it also isn’t asking for a substantial sum that couldn’t be repaid in a reasonable amount of time. Even if you only paid $200 back each month, it would only take you 10 months to pay it off in full. Unlike banks that have fairly strict procedures around lending, there are a number of other Vancouver lending firms that can offer you loans for emergency requirements. For a $2,000 amount, it’s unlikely that a payday loan would make sense – with its higher rates of interest – but other lending institutions in the Vancouver area could provide alternatives that could help you out with the funds that you need.
Even if you don’t have the money right now, there are a number of ways you can obtain a $2,000 loan in Vancouver. By looking into the 4 suggestions above, you’ll be one step closer to accessing the cash you need and then find the right method of paying it back in the future. Good luck!