The Reasons People Today Go With Poor Credit Loans Rather Than Acquiring Credit From Loan Sharks? Ask any person, even a rich man if at some point in his life, he needed to borrow money. Most of them, if they are honest enough will tell you yes, they have experienced a point when they had no money. Sometimes, we all need a push to help us get through one more day. Loans are there as a sort of back up for people who may fall short or fall in dire financial need. But, if we cannot pay the loan within the required time frame, we may end up with bad credit standing. People with bad credit history have difficulty getting loans from banks and major financial institutions because they are considered risky borrowers. Thus, if in the future you will need to secure a loan for a project, a car or a house, you should take care that your credit history don't get marred. But, if you have failed to comply with your financial obligations, you will end up with a poor credit score and would not have any choice but to obtain a bad credit loan the next time you would need money. Lending companies came up with these types of loans to help people with bad credit score raise their credit rating. Although these loans can be obtained easily, they also come with very high interest. Comparing standard loans from banks and bad credit loans from lending companies, the latter have higher interest. When compared to unsecured loans you get from banks, bad credit loan interests are still higher. The high interest rate is to offset the high risk the lending company carries by lending money to a person with low credit score. Since this is the case, you should not get a loan just because you want to buy an expensive bag, but only obtain this type of loan in emergency cases. Between a loan shark and a bad credit loan, why choose the latter? Loan sharks, if you donâ€™t know, are loans that you can get from the mob or people engaged in shady and unlawful transactions. You donâ€™t have anything to sign when it comes to obtaining loans from loan sharks, but the transactions are always beset by many hidden charges. You cannot really expect the mob to be honest, do you? And, what makes it very dangerous to borrow money from them is the fact that the collectors are goons with guns. You should not fail to pay your loan if you don't want to get beaten up by their hired goons.