Choosing a bad credit lender

Getting a stock loan, payday loan, or secured personal loan can be difficult task.  So choosing the best bad credit lender for you will help the process go a lot easier and smoother.  Seeking out loans if you have bad credit might take a while and require going through different lenders but once you find one that works for you the process of actually transferring funds and coming to an agreement is usually very quick, when looking for a bad credit lender, something to consider are:

  • Online lenders or Brick and Mortar
  • Interest Rates
  • Reputation
  • Type of loans available

Online lenders vs. Brick and Mortar lenders

Technology and the popularity of the internet have made online lenders a growing business especially in the U.S.  Traditional lenders with office space who strictly do transactions in person are still a great option as well.  Both have their own advantages and disadvantages so neither is necessarily better than the other. Some of the benefits of an online bad credit lender are:

  • Convenience: Online lenders allow borrowers to do the entire transaction from the comfort of their own home. Funds are transferred directly to your account and the contract is either signed electronically or via a fax machine.
  • Privacy: Seeking out loans if you have bad credit can be somewhat embarrassing for some people.  Completing the process online means you don’t have to meet face to face with a lender and face judgment.
  • More options: Looking for lenders will give you a great variety to choose from.  There are tons of bad credit lenders who are willing to give people loans.

Brick and Mortar lenders also have a lot of great advantages to them that you might not get from an internet lender.  Some benefits of choosing a brick and mortar bad credit lender are:

  • Security: Meeting and seeing your lender in person might make you feel more comfortable with giving them your personal information.
  • Relationship building: Having a lender who you can meet in real life will give you the opportunity to establish a relationship.  If for some reason you are late on a payment they may be more understanding due to the relationship you have with them.

Interest Rates

With any type of loan, you want to make sure you are paying the lowest interest rate possible.  Look for a bad credit lender who is offering a special or boasts low interest rate already, you will want to cut your costs any way you can by shopping for the best rate available.  Your rate will depend on your credit score, the amount of the loan, and whether or not you are providing collateral among other things.


Since you’re going to be providing your lender with personal information, it helps to know they have a solid reputation.  This is especially true for online lenders.  There are some scammers out there who are purely looking to steal your personal information so steer clear of them.  Also, some lenders are known for charging outrageous interest that can even exceed the legal amount (usury rates). If you’ve never heard of a bad credit lender or can’t find any information about them tread carefully to avoid being taken advantage of.

Types of Loans Available

Since there are several types of bad credit loans available choosing a lender that offers more than one type of them will leave your options open.  If a lender only offers unsecured personal loans, you may be stuck paying interest than you would if they offered stock loans or secured loans.  Your bad credit lender should have multiple loans available to allow you to choose which one is best for you.

Taking all this information into account when you’re looking for a bad credit lender will greatly reduce your chances of paying more than necessary as well as allow you to select a lender that you feel comfortable with.  Choosing the best lender and correct loan type will have you back on your feet in no time.