You have already ruled out family, friends, or even your boss. This is something you have to deal with on your own. Where do you turn?
Assess Your Situation
Before you go looking for a bad-credit loan, you need to have some goals in mind. Looking to go on a spending spree or a weekend holiday is not a reason for a loan. How much do you need? Do you REALLY need that much? Do you have a strategy to pay off the loan? Once you have a realistic idea of how much you need and how you are going to repay, then it is time to look for a lender.
The Right Loan
Two kinds of loans are available to those with bad credit. The secured loan and the unsecured loan. A secured loan means that you have some property of real value that you can use as collateral to secure the loan. If you default on the loan, the lender has a right to seize the property and sell it to cover the loan cost. Interest rates are lower with this type of loan.
An unsecured loan means that the lender is relying solely on your honesty to repay the money. These loans demand high interest rates, as compared to secured loans, so that the lender can recover in the case of any defaults that may occur. In spite of the fact that they are unsecured, these loans are not that hard to come by. You just have to be careful.
Check Your Credit History
Before you go looking for bad-credit loans, it is important to get a picture of how a lender will look at you when you walk into his or her door or sees your credentials online. How bad is your credit? How can you explain the lapses in financial responsibility? By law you are allowed one look at your credit history free of charge once a year. Take advantage of that.
Do Your Research
You may see lenders in local shopping malls, you may see lenders on the Web. You need to approach each one and determine what collateral they may require, if any, what interest rates they charge, and how comfortable the repayment terms are for you.
The more you poke around, the more likely you will find a lender who will help you out without imposing any untoward demands on your financial life. Your search will be done more easily on the internet, but you do not have to restrict your search to there. Often lenders local to you are best just because of the human contact.
You have bad credit, you need money, those reasons right there limit the amount you might be able to receive. Talk to lenders, both local and online, to see how best they can accommodate your needs. They will ask you about how you intend to use the loan. Do you need a car repair? Do you need a bill consolidation loan?
NEVER let a lender make you feel like they are doing you a favor. You are doing THEM a favor by bringing them your business. If you are made to feel like this you will only get high interest rates and rough repayment terms. Do not sign anything you do not understand, do not sign anything that does not have the best interest rates and repayment terms comfortable to you.
Rebuilding Your Credit History
One thing good about taking out a bad-credit loan is that if you repay it under the terms you signed, it will be a big step in rebuilding you credit scores. The more small loans you take and payback, the better your scores become.