Bad credit makes getting a loan difficult, but it's not impossible. Options for obtaining a loan are limited for an individual with a poor credit history. However, there are still a number of options that may work for you. Depending on your specific needs, there is likely a way that you will be able to get your hands on the money you are seeking, if you are willing to accept higher than average interest rates.

Getting Unsecured Loans

Expect to pay a very high interest rate on an unsecured loan if you are able to find a lending institution that will allow you to borrow, according to SuperPages.com. You may not have to have a credit check with some personal loans, making it possible to obtain credit. As long as you repay the loan according to the terms, it can actually improve your credit score. Fill out an application. Be prepared to show a stable income and the ability to pay back the amount of the monthly installments. If you jump from job to job--or if you are unemployed--it may affect your chances of getting an unsecured loan.

Collateral

Apply for a secured loan by placing something you own up for collateral. This means the lending institution would have the right to claim the item if you fail to pay the loan. This is often the type of loan you get when you buy a car. You purchase the car from the lot. The lending institution pays the lot for the car, and you then owe the lending institution the cost of the car plus interest. If you fail to pay, the lender may repossess the car. You will have to undergo a credit check to obtain most of these types of loans. Since you are using collateral, the lender sees this as a lower risk proposition. However, your credit may limit the amount of money you can borrow. It will certainly affect the interest rate you are offered.

Pay Day Loans

Get a payday loan, if you need money for a short amount of time. You do not need a credit check to obtain one of these loans. Write a check to the lender in the amount of the loan, plus any applicable interest and fees that will accrue before your next payday. The lender will give you the cash on the spot and will hold your check until your next payday. The lender will cash the check on that day. You will have to prove that you make enough money on your paycheck to cover the amount. Use payday loans with caution. Some borrowers get trapped in repeat borrowing from these lenders because of unaffordable repayment terms. Some payday loan businesses will charge triple digit interest rates and unreasonable fees to desperate loan seekers, according to the Payday Loan Consumer Information Website.

Small Amounts and Big Payments

Borrow the smallest amount you can when taking out a loan. Use only what you need, according to Rebuild.org. When you talk to your lender about repayment terms, consider whether you will be able to may more than the minimum monthly installment on the loan. Make larger payments than necessary to quickly payoff the loan and begin rebuilding your credit.

Source:

Super Pages: Can You Get a Personal Loan with Bad Credit?

Rebuild: Personal Loans Even With Bad Credit

PayDay Loan Consumer Information