Personal Loan - Don't assume that just because you have bad credit you can't get a personal loan. However, you will likely have to pay a higher rate of interest. Look at this though as an opportunity for you to rebuilt your credit. If you make all of those payments on time, your credit report will reflect that positive information. It can be your beginning to a fresh start financially.
Payday Loan - You can also pay extra on the personal loan so that you will pay less in interest. Even paying an extra $25 per payment can slash those fees significantly by the time the loan is all paid for. If that is a plan you wish to follow, make sure you don't work with any lender that is going to charge you fees for paying the personal loan off early.
If you have circumstances such as a divorce, death in the family, medical problems, or loss of a job due to no fault of your own that could have a substantial impact on your credit. Explaining this information to the lender is a good idea. They may be able to give you a better rate once you are able to explain everything that has occurred. You may be required to verify the information you offer them in order for them to work with you.
Do you have a friend or family member with excellent credit that can help you out? They can co-sign on your personal loan. This means that if you aren't able to pay your account according to the terms and conditions, they will have to pay it for you. This can be hard on them so you have to make sure you are able to keep up those payments. With a co-signer though you can often get the credit you need and start to rebuild your own credit history for the future.
Even though you know you have bad credit, find out what it looks like. There could be some discreprencies on your credit report. They can make you look irresponsible and not show a true reflection of your situation. If you see such problems on your credit report you need to get them taken care of.
Even a few extra points on your credit score can make a difference about you getting approved for the personal loan or not. They can also influence how much you will pay for interest. Typically, the lower your credit score is the more you will pay. This is because the lender is taking an increased risk with you.
Payday loans are an option if you have bad credit as no credit check is conducted. Instead, the lender is looking to see if you have the means to repay what you borrow at this point in time. You will have to verify you have income, show a photo ID, and have a valid checking account. Keep in mind that a payday loan though will have much higher interest than other personal loan options.