For those people with many credit card bills which seem to constantly pile up, condensing their payments into one can provide immense relief. This way, you only have one bill to pay each month and you will not be subject to revolving interest rates.

Consolidation loans for bad credit are generally offered through internet banks and private lenders. Because your credit score is low, finding a lender to work with can be a challenge. However, the degree of your “bad” credit will have a huge impact on this loan. A score of 650 is more likely to receive aid than a score of 520, for example.

The other option available to those with bad credit is low principle personal loans, also called payday loans or cash advance loans. This type of personal loan is generally only given in amounts of $1,000-$1,500 and carries a short term of anywhere from 14-120 days. Payday loans do not require a credit check, but will instead be based upon your current bank account.

Payday loans are given as long as you are over the age of 18 and have a checking or savings account with a balance equal to the amount of the payday loan. You will also need to provide proof of employment that spans at least six months. Since you will not undergo a credit check, bad credit will not affect your ability to get these loans.

While payday loans cannot help relieve your current debt problems, they can help you to improve your credit score over time. This is because taking these loans and responsibly repaying them will improve your repayment history on your credit report. This portion of your financial life has a huge barring on your ultimate credit score.

Generally, those with bad credit cannot go to the traditional lending houses that those with good credit use. Therefore, community banks and local credit unions are generally not an option. Instead, borrowers with bad credit are best advised to seek the aid of online private lenders. These professionals work with individuals whose credit histories are questionable, just like you. The personal loans for bad credit that they offer are therefore tested and proven successful with borrowers in a similar position.

These two options will allow you the ability to use personal loans to improve your bad credit over time. No matter which method you choose, the process of improving your credit is an important one.