Improve Your Credit Score

27 cash Bad credit personal loans are offered by many banks, since they can make money by offering loans to those with bad credit. Most loan offers and credit cards will decide on an interest rate based on the applicant's credit score, so those with lower scores will receive a higher interest rate. A bad credit personal loan can be used to improve a credit score, especially if it is being used to pay off existing debt. The only problem is that because most bad credit personal loans come with a high monthly interest charge, it can actually cost more to pay off existing debt with a bad credit personal loan. Before applying for a bad credit personal loan, it is important to find out which lenders offer loans to those with less than perfect credit, since applying for a loan can actually have a negative impact on your credit score, especially if the loan is declined. By researching and finding the best loan for each personal situation, you can easily get a bad credit personal loan.