If you are in need of some extra cash but have poor credit, a personal loan for bad credit can help you achieve your financial goals. A bad credit loan may be better suited for tackling debt consolidation. These loans are designed to make your monthly payments more affordable and reduce the stress of a large debt. But before you apply for a personal loan, consider your needs and crunch some numbers. The best personal loan for bad credit will improve your life, not add more stress.
There are two types of personal loans – secured and unsecured. Both affect a borrower’s credit in the same way. Upon applying for a loan, the lender will look up the borrower’s credit reports to determine their repayment history, credit card limit and balance, and any negative information.
These reports are filed by consumer credit reporting agencies like Experian, TransUnion, Equifax, …