Bad Credit Loans

Bad Credit Personal Loans and You

bad credit personal loans
Written by Shelly Evans

Personal loans for bad credit give people a chance to get the financial assistance they need despite the fact that they have unimpressive credit rating.

It also gives them the opportunity to improve their credit rating by submitting their loan payments on time.

Do you have bad credit too? If you do, then you’ll be glad to know that there are lending companies willing to extend financing to customers who are credit challenged. Indeed, these lenders offer great help especially during times of emergencies.

Secured and Unsecured Loans for Bad Credit

Bad credit loans can be secured or unsecured. For homeowners, they may choose to apply for a secured bad credit personal loan and use their home as collateral for their debt. Many borrowers opt for this type of bad credit loan to enjoy lower interest rate.

Nonetheless, if you’re not in the position to submit collateral or if you simply do not want to put any of your properties on the line, you may choose an unsecured bad credit personal loan. Understandably, the rate of interest would be higher because of the absence of security.

Bad Credit Loans and Rates

Although personal loans for bad credit are expected to carry higher rates, the borrower should not grab the first offer that comes their way. They need to be very careful in evaluating the lender’s background and in choosing a fair loan deal. Even with bad credit, you still deserve to be treated fairly and with dignity.

Don’t let a lender make you believe that you don’t deserve a good rate just because of your credit score. Before submitting your application, order a copy of your credit report first and check your credit rating. Some lenders may try to cheat by telling a borrower that they have a much lower credit score than what they really have. Being aware of your exact credit standing will protect you from such lenders who are out to take advantage of you.

Compare bad credit loan lenders

If you need a bad credit personal loan, compare at least three bad credit loan lenders with good reputation in the industry. Once you have found a potential lender, try to negotiate for a lower rate. Check the interest rate, fees, terms and conditions associated with the loan.

See to it that you are dealing with a legitimate lending company. Take the extra time to investigate the lending company’s background and reputation. Some lenders may offer quick approval and incredibly low interest rate but you could be up for unpleasant surprises in the middle of repayment.

About the author

Shelly Evans

Shelly Evans is a freelance writer and loan consultant. She specialize in writing articles about obtaining financing despite having bad credit. She has more than 16 years in consumer credit and collections and 4 years in business financing.


  • I found this article to be really informative about bad credit personal loans. I’m embarrassed about my bad credit and hope people are at least willing to consider me as I don’t think I’m that much of a credit risk now that I’ve got a good job. My bad credit was due to a period of unemployment in this economy 🙁

  • ALOHA Shelly Evans my name is John Baker I have read your article and I really need help I have tried to apply for (many) loans but got denied but I didn’t kno the more you apply for a loan the more your credit score goes down I just need someone to help me with a personal loan to get me back on my feet and pay my loans on time. Please help me thank you very much take care ALOHA

  • This is why my husband and I love to have a handle on our money. We will never borrow (unless we have the money to pay it back immediately). Luckily, we have a great score.

  • Good tips. I think people sometimes forget to do their due diligence. They should investigate the lenders as much as lenders investigate their clients.

  • These are great tips for people trying to get a loan that have credit issues. I know this can seem overwhelming for people trying to reestablish their credit!

  • These are such important tips. I was always raised to have as little debt as possible–if I couldn’t afford it, I didn’t buy it. Thankfully right now all I have is an outstanding mortgage, which will hopefully be paid off soon. Love reading your tips!

  • Great and helpful information! I often have friends who run into these types of circumstances, and it’s really not something I know much about. I’ll bookmark this as a resource for the future. (Also, as an aside – your image isn’t working at the top of the post)

  • It’s nice to know that even when you have bad credit, you can still avail a personal loan. It’s better to have a god credit standing though, you get better rates.

  • last I checked, i had pretty good credit, and i’m really fortunate now that we don’t have to deal with financial stress. i remember growing up and our family was always worried bc they had bad credit and financial problems.

  • I think this is a great idea for people that are really struggling. Personally, I say the less debt the better….so if you need to downsize to raise your credit, then do it!

  • This was really informative. So many people are in debt these days, and it can totally be a downward spiral that is hard to get out of. Thankfully our only debt is student loans. I would love to be rid of those!

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