Contrary to common misconception, people with bad credit can also be granted a personal loan provided they know their way. The mistake that most people with bad credit do is to lose out the battle from the first moment itself. They accept defeat as they accept from the beginning that no matter what, they cannot be granted a personal loan. This is certainly not the truth. They too can get personal loans as long they follow these guidelines.
Pay day loans are small loans granted by banks. The amount of these pay day loans would equal to your monthly salary. This loan is the easiest to get and is based on the principle that during the month, if you face a financial crunch you can avail an overdraft facility from the bank which can be returned from your salary on the nest day. This is a great type of loan for a short term requirement as it is easy to get and the applicable rate of interest is also low in this case.
The only reason for the bank to refuse your personal loan application is because they consider you to be risky proposition. They fear that with your bad credit rating you are prone to default the loan. This would mean a loss from their end. The very moment that you come with a backup from a guarantor with a good credit score or a security in terms of real estate or share certificates, trust is restored and they would find you suitable for granting a loan.
Also ensure that you provide them enough documents to prove that though your credit scores are bad, your financial condition has improved. You have to prove that you are in a better position to service your loans.