How do you get a guaranteed bad credit personal loan? There really is only one method to achieve this and that's getting a payday loan. You can apply for financing from your bank, but in most instances you will not be approved unless you use your home as collateral.

Therefore, if you do not have a house, than a payday loan is your only option. There is a lot of misinformation about this topic. Many people these are fast and easy solutions to getting the money they need. One thing is true-they are fast.

However, what the advertisements do not tell you is that there are definitely problems attached with this financing. Here are four frequently asked questions about these loans:

1) How does a payday loan work?

First, you have to apply with one of the many companies online that offer them. Once they determine you are eligible, they will give you a direct deposit, and you often have the money within 24 hours.

2) Who qualifies?

Anyone who can provide verification of employment, has a legitimate bank account, and is over eighteen years old is generally accepted. This is because the companies do not run a credit check, because they have collateral-your next paycheck.

3) What is the catch?

As with most things that look too good to be true, there are cons to payday loans. The main thing is that the interest rate is extremely high, and you have to pay back the financing extremely quickly. In most instances the rates are around 20%, although they can be as high as 25. Therefore, if you take out $500, expect to be paying back $600-625.

In addition, the late fees are ridiculously high as well. Therefore, if you cannot make your payment on time, you are then hit with a huge additional expense. Before you know it, the late fees can keep adding up until you cannot make your payment. Payday loans are often times the first step to bankruptcy for many people.

4) Why are the rates so high?

This is because the companies do not perform a credit check. These companies are used to many of their customers not paying, and they need interest rates like these to make a profit.

So are guaranteed bad credit loans a bad idea? It really depends on your situation. If you are absolutely certain you will be able to pay them back on time, then go for it. However, if you are anything less than 100% sure, avoid a guaranteed bad credit personal loan.

Having bad credit can really stop you from getting the loan you need but sometimes that loan is necessary. To get a guaranteed loan no matter how bad your credit is click here.