Regardless of whether or not you are employed, unemployed, or looking after a home, there can be many times in our lives when money is in short supply. Even people who have always had financial security can find themselves struggling for money at some point. This can happen if they suddenly lose their job, as this can result in a downward spiral. The bank balance can run low, mortgage payments are missed, the house is repossessed, bills are not paid, and before a person with a great credit rating knows it, their credit score has been totally trashed.
The thing about a credit score is that it equates to the percentage we are all charged if we take out a loan. It also decides who will actually lend us money. For instance, a person with an excellent rating will be able to negotiate a loan between banks, and then settle on the best deal. This will involve getting the loan at a very low APR. This is not true for those whose credit score has taken a nose dive, as most certainly the normal banks will not want to loan them any money. This is when loans with bad credit can be the solution.
Before considering loans with bad credit, it is always a good idea to start with the main banks, and once denied, move down the list of those with higher APR. Eventually the only solution maybe a bad credit loan, and this will mean a high interest rate. For most people with bad ratings, this will be the best option for them. It is sad that those who have the least amount of money have to pay the highest rates, but that is how the financial markets work when they have to manage risk.