Many people whose credit is less than perfect think that it is not possible for them to obtain personal loans, but nothing could be farther from the truth. There are poor credit personal loans available; you just have to know how to hunt them down!

The key to obtaining any loan with less than perfect credit is to be patient. It can be hard, especially if you are worried about a bank account over drafting, to take the time needed to find the best rates and the best lenders, but in the end it is worth it. Think about it, you don't want to get manipulated into paying too much for your loan do you? That is exactly what will happen if you don't take the time to see what options are available to you. Never ever accept the first loan that someone offers you!

Here are two of the poor credit personal loans that are available to you:

Payday Loan

Payday loans are perfect for people who are worried about whether or not they will have enough money to carry them through until they receive their next paycheck. These loans are smaller, it is difficult to qualify for more than five hundred dollars, and all you usually need to qualify for them is a checking account in good standing and have put in more than a month at your current job (some payday lenders want three months on the current job, so be sure to ask). The downside to these loans is that they come with hefty interest rates and fees attached. If there is even the slightest chance that you might have trouble repaying your loan, do not apply for one.

Secured Loan from a Bank

If you own your home, you can use your home as collateral to obtain a secured loan from your bank (or other mortgage lenders). Often these types of loans are called second mortgages as the amount of money you will be allowed to borrow will be directly proportional to the amount of equity that you've built with your home. Secured loans are best for people who want to pay off other debts and consolidate what they owe into a single bill. They have also been used for home repairs or second cars or to start new businesses. When it comes to personal loans, these are by far your best option. The catch is that if you default on the loan, you could lose your home. Make sure you can make your payments on time every month!

With any type of bad credit loan, you'll have to accept higher interest rates and lengthier repayment periods. Unfortunately that is part of the deal when it comes to having poor credit. The bright side in all of that, however, is this: by paying your loans back on time every month, you will start raising your credit score. You might even be able to raise it enough to rid your self of the "credit risk" label!