You may think that having bad credit implies being unable to get a loan or getting a loan but having to pay high interest rates. Though it is partly true, it is also true that there are ways of getting approved for a loan with low interest rates even with bad credit. Most commonly, secured bad credit loans have low interest rates since the lender is guaranteed repayment by the collateral offered by the applicant.

Savings-Secured Loans The good news are that the finance industry has created a new way to provide bad credit loans with low interest rates for people that are not homeowners. Savings-secured loans are a way to borrow money using your savings funds as collateral. The money you have on your savings account will then become the loan's security.

Few Requirements Your credit score is not that important, since the loan is secured with your own savings and the bank or financial institution already knows you