Individuals with bad credit may be able to qualify for a personal loan if they have verifiable income that is sufficient to repay the loan, as stated by Bankrate, a website that specializes in personal finance education. Many lenders charge significantly higher interest rates and loan fees for borrowers with poor credit, making the loan extremely costly.
Prospective borrowers should shop around to find the lending institution that can offer the best interest rate. Loan products from credit unions and online banks should be considered in addition to brick-and-mortar banks.
Taking steps to improve an individual's credit history can increase the chance that he or she is approved for the loan and result in more favorable loan terms.