Check Out Your Options For Personal Loans Thoroughly

Online, August 9, 2011 (Newswire.com) - If you have poor or bad credit, you know how difficult it can be to find a personal loan. But there are some things you can do to make your chances of getting that personal loan much greater.

First, you should know exactly where you stand. Go ahead and get a copy of your credit report from each of the three credit reporting bureaus. Look for inaccuracies - one in four credit reports will reflect some sort of inaccuracy. And that incorrect information could lead to denial of credit.

Once you know what your credit score is and what is reflected by your credit report, you will be able to figure out what your next step needs to be. If your credit is really bad, you may want to consider seeking out a friend or family member to give you a loan. This may not seem like the ideal scenario, but it may be your best option. Be sure to include an interest rate, so that your lender will feel better about the loan.

Another source of loans are banks and credit unions - these can be two of the best sources to get personal loans if you've got bad credit. The advantage comes in the familiarity - go to the bank or credit union where you already do business. Remember that the bank or credit union doesn't owe you a loan just because you're already a customer. But they may be a little more inclined to bend the rules with a person who's already a customer.

You can also look online. The Internet is filled with lenders who can provide personal loans to those with poor or bad credit. But here's a word to the wise: Be sure you check out any company you are considering with the Better Business Bureau. Never sign up for a loan on an online site if you can't speak to a human on the telephone. Ask lots of questions, read the fine print, and make sure you fully understand the terms before you sign.

The last option you can consider is a payday loan. Payday, or cash advance loans, can seem like your only chance if you have bad credit. But this type of loan can be a great option if your situation is truly an emergency one, and that you can pay the loan back in the allotted time.

But don't forget: Payday loans have extraordinarily high interest rates, and they can roll over, which will likely get you into some real trouble. You can quickly find yourself in some serious quicksand ¬- with no way out.

So do your homework, look at all your options, ask a lot of questions, and make sure you only sign up for the loan you know you can repay.