Having a bankruptcy, repossession or other negative credit marks on record is not an obstacle to receiving a loan. In fact, there are many companies who specialize in personal loans for people with bad credit. These loans are available as secured or unsecured. They typically have higher interest rates and lend smaller amounts.

Unsecured

A personal loan is categorized as unsecured or secured. An unsecured note is not backed by collateral. The applicant approval is based on minimal documentation, usually no more than proof of employment and a valid checking account. Because no formal closing is necessary, the process is fast, and some companies will process the application and get the funds deposited in an individual's account in 24 hours or less. Online processing can be even faster.

Secured

A secured personal loan can be more complicated. The borrower needs assets equivalent to or in excess of the sum being borrowed. Examples are a home or other real property, a business or a car. Homes and property with equity are eligible for home equity lines of credit, also known as a heloc. The borrower is taking a line of credit for a portion of the equity value in their home, up to the maximum value. In some cases, lenders will allow homeowners to exceed the value. These loans generally have lower interest rates and are similar to a revolving credit line.

A title note is based on the value of the individual's automobile. For a car owner with bad credit, this is one way of getting personal loans with equal risk and reward. Title loans are a relatively quick process, but if payments are missed, the vehicle will be repossessed.

Payday

Other options for personal loans for people with bad credit are payday lenders. The payday lending industry has a reputation for charging high annual interest rates on small sums of money, but with regulation in more than 30 states, this has become a viable resource for those in desperate need. In regulated states, annual fees are capped off at a percentage that varies from state to state.

This note is the easiest to obtain, quickest to process and also has the shortest terms. The payback due date is the next paycheck, typically 14 days. Borrowers can extend the terms to 30 or 31 days, but additional charges usually apply.

To qualify for any type of note, the individual should, at minimum, have a steady job, a valid checking account, proof of citizenship, a phone number and a valid address.

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.