Expert: Joe Montgomery - 5/15/2007

Question
I have often heard through various articles on the 'net and forums that it is possible to get a personal loan even if you have bad credit. I have looked online to find these places but all i come up with our places that look like scams. I have tried credit.com and have been denied, and other places won't even give a loan out to me just because i rent. I'm currently a college student and am need of a loan asap. Are there any respectable. real places online that give out loans of more than 3000 to a person with bad credit or even in real life? Help!

Answer
I'm sorry to tell you the answer is no.  It is true that there are a few companies that offer unsecured personal loans regardless of credit, but most of them have a high stated interest rate and fees.  The other problem to that is that even though they offer a 25-35% interest rate, once the fees and other charges are added, the APR is closer to 50%, and if you have any late payments or other problems there are more fees and serious collection issues.
I don't know the particulars of why you need the loan, but I would talk to family, friends, and if it's for school, possibly a campus financial advisor to see if you have options.