The best long-term loans for people with bad credit are secured loans. Secured loans are so named because lenders get a legal claim on borrowers' properties or other assets. Because they are secured, secured loans have lower eligibility requirements and longer payment periods. People with bad credit can also turn to lenders such as Cash Loans with Bad Credit for loans. However, their eligibility requirements are generally higher.
People with bad credit are often limited to short-term unsecured loans known as payday loans, small dollar loans or payday advances. These loans typically offer small amounts of money at higher interest rates as compared to normal loans. Small dollar loans are usually pegged to the borrowers' next payday. For this reason, proof of employment is generally required during the process of loan application. A number of lenders are willing to extend loans to people with bad credit. However, their eligibility requirements are typically not very different from those demanded by payday loan vendors. Despite these limitations, borrowers with bad credit can take advantage of these loans to repair their rating by repaying on time. Where possible, people with bad credit should opt for secured loans, particularly if they want to borrow a large amount of money for a lengthy time period.