In 2017, getting a personal loan is possible for just about everybody. On the other hand, not every loan is of the same quality. For people with excellent credit, there are plenty of lenders out there who would love to give you their money, without charging a whole lot of interest. For people without great credit, the landscape isn’t so benevolent.

People with bad credit might think it’s impossible to borrow money. This misconception is usually the result of having been denied a loan from a traditional lender. It’s also the result of not knowing all of the places from which a loan can be acquired.

You see, in the old days, most people got loans from one source: their bank. Lots of people still get loans this way, and it’s a perfectly find practice. But banks aren’t motivated to give loans to people with bad credit. Bad credit, signified by a low credit score, is a signal to bank lenders that it is too risky to give a loan to you. People with bad credit tend to default on loans more often than those who have good credit scores. As a result, large banks with millions of customers have very little incentive to give money to people who might not pay it back.

This puts people with bad credit scores in a tough position. Bad credit isn’t always the result of bad behavior. Sometimes terrible financial situations are inherited, or are the result of accidents or illness. Still, people with bad credit periodically need to borrow money. This guide will tell you more about how this process works:

If you have bad credit and you need to borrow money, you’ve got to look outside of the traditional lending industry that served your parents and grandparents. Today, there is an independent lending industry that caters to borrowers at all levels of credit worthiness. If you have bad credit, there are many companies that create loans for people just like you, but you’ll have to be a careful when choosing a loan.

This is because loans for people with bad credit are uniformly expensive. Companies that give out these loans have to make up for the times when customers fail to pay a loan back. This doesn’t happen every time, but after giving out hundreds of loans, companies start to understand the rates at which customers tend to default.

This lost money is made up for by the rates that these companies charge for their loans. Annual Percentage Rates (or APRs) are the combination of interest and annual fees that a customer will pay in addition to the primary balance of a loan. For bad credit loans, the APR is always high, often above 20%. This makes it important to pay the loan off quickly, at least if you want to avoid paying lots of money over and above the amount of money that you borrowed. You can get loans like this from many sources now, but it’s important to go with the lender who offers you the loan at the best price.