There are many programs available for people to get different kinds of loans. Even if you have bad credit, you might be eligible for one of these programs. Here are some ways that you might qualify for a loan, and things to keep in mind when trying to obtain credit with a poor credit history.

You might be able to obtain a bad credit personal loan. These loans are geared towards people with bad credit, who have had trouble meeting their obligations in the past. Not surprisingly, these loans come with a price: the interest rates are usually high, and sometimes there are other fees pertaining to the loan that would not be issued if the person applying had a better credit history.

Payday loans, also sometimes called cash advance loans, are one type of bad credit personal loans. The amount of money lent is usually small and it is due back on the borrower’s next payday. The fees and interest rates for this type of loan are very high in comparison to the amount of money borrowed. These are best avoided or used only in the case of an emergency.

There are also companies that specialize in providing automobile financing to people with bad credit. These companies tend to charge high interest rates. Your car dealership will have information on which companies it deals with for financing. In some cases, you might be able to get a high interest loan for a car and refinance the loan within a year or two to a lower interest rate in order to lower your payment.

Sometimes people with past credit problems can qualify for certain types of mortgages as well. These can be traditional mortgages with a high interest rate, or they can be adjustable rate mortgages. In an adjustable rate mortgage, you might be assigned a low rate for a period of time, such as two, three, or five years. After that time period, if you are unable to refinance to a fixed mortgage rate because your credit is still not good enough, your interest rate can skyrocket. This rate can continue to climb each year, and you might be at risk of losing your home if you are unable to keep up with the payments.

If your credit is not terrible, but not good enough to qualify for a major credit card or traditional loan, you might consider applying for a department store or catalog credit card. The requirements for these cards are usually less stringent than those for major credit cards. If you qualify for this kind of credit card and make your payments on time consistently, within several months you may build up enough good credit to qualify for a personal loan or major credit card.

If your credit is bad enough that you don’t qualify for any loans with interest rates that you can afford to pay, you might be better off delaying your purchase until you can get all of your bills current or paid off. A credit counselor can help you to prioritize and pay off your obligations. Even terrible credit can get substantially better within one to three years, as long as you begin making your payments in full and on time. Once your credit history is better, you will be able to qualify for better loans with lower interest rates.