No longer do people with bad credit have to turn down loans. Since bad credit is more common than good credit these days, banks and lenders have made it easier for people with low credit scores to get loans.
A secured loan is one way to get a loan even if you have bad credit. Secured loans are loans that require the person who wants to borrow the money to put money into a secured account as collateral. Most of the time, this is how people with lower credit scores can get credit cards. The person who wants a credit card opens an account at a certain bank and puts up to $500 in it. The bank then gives out a credit card with the same credit limit as the deposit, minus a fee for the card. The card is then used like a credit card, but the money in the account "secures" it. You can't get the money out of the account because it's there in case you don't pay your card bill.
With higher interest rates, you can also get a loan even if you have bad credit. High-risk loans can be made by banks and other lenders, but they will charge a higher interest rate. This makes sure that the bank gets all of its money back, plus more. The interest rate on these loans can be as high as 30%, but at least you can get the loan and, if you pay it back on time, you might be able to fix your credit.
There are loans like these and many others out there, but you have to look for them. The internet is a big help, but if you don't have access to it, you can still call the Better Business Bureau or your local Chamber of Commerce to get a list of high-risk lenders. Either way, these kinds of loans are out there and can help people who are having trouble finding a bank or other lender who will give them a chance.
