Often people search around for bad credit personal loans and have no idea what they're really looking for. Well....it turns out that most of the time they are looking for loans that couldn't possibly exist. They want a low interest loan with no collateral or credit check. If I could profit from loaning under those conditions I would be the richest man on planet earth because everyone would want one of those loans.
The honest truth is that a bank can't afford to take that kind of risk on people with bad credit. This makes some people mad but let's be honest - if your credit is terrible it's because you have a habit of not paying your bills (or not paying them on time). This is a lot of extra risk for a lending institution.
Payday loans get away with loaning money to random people with bad credit because the interest charged on payday loans is extreme. They make so much on the people they loan to, it covers the cost of some loans not being paid back. This model has been working for years, but honestly these loans are terrible for the consumer. I would stay away from them if it's at all possible.
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