Getting Small Personal Loans with Bad Credit for Financial Emergencies

The arrival of unexpected expenses can be a nightmare for those of us on tight monthly budgets. The last thing that we need is a financial emergency diverting funds away from something that needs payment every month. But there is a way to access small personal loans with bad credit without causing too much havoc.The thing about financial emergencies is that there is a strong need for instant loan approval. This means that the normal channels cannot be taken, with 24-hours often the shortest period of time lenders require to decide the fate of the application.But while getting instant approval on a personal loan is a huge advantage, making the loan pay requires some careful consideration in advance. These relate to the term of the loan, the interest to be charged and other conditions. Remember, as a general rule, the faster the loan approval, the higher the overall cost.How Much Is Affordable?The key to ensuring a borrower does not overextend themselves is to properly assess what is affordable. For example, there is no point in borrowing $3,000 if the repayments cannot be met comfortably. Also, getting even small personal loans with bad credit can be expensive if the right term is not secured, or the lowest interest rate possible.Of course, interest rates have a huge say in the affordability of any loan. But loans that offer instant loan approval typically come with very high interest rates, some as high as 30%. This means the repayment is significantly higher that the small loan principal, creating a potential financial drain in the long run.Consider the Loan TermUsually, a small personal loan of about $1,500 that is instantly granted by an online lender must be repaid in as little as two weeks. These are essentially payday loans, with the loan repaid in full directly from one paycheck. But it is possible to get larger loans and to negotiate a longer loan term and repayment schedule.For example, a loan of $3,000 might be repaid over 60 days rather that 30, or even 90 days. Remember that with such high interest rates charged, the repayments will be higher too, though it may be worth the cost for the chance to get a small personal loan with bad credit.Consider Offering SecurityA way to secure instant loan approval on a small loan but at a much lower interest rate is to provide some security with the loan. This ultimately means that a payday loan is not needed, ensuring that a more accommodating repayment schedule can also be agreed - perhaps over 6 months or even a year.There are two acceptable forms of security to consider: collateral or a cosigner. Finding an item to use as collateral is not usually a problem for small personal loans, but it does require putting something of personal worth at risk. A cosigner guarantees the repayments will be made. In both cases, because the risk to the lender is reduced, interest rates falls to normal loan levels - around 10%.Shortlist The Best LendersA wise move for anyone seeking to secure small personal loans with bad credit is to make a shortlist of the lenders offering the best loan deals. This is made easier through the comparison websites available online, with the terms and conditions of each loan displayed clearly for easy comparison.However, it is not enough to just seek out a package that includes low interest rates and instant loan approval. The shortlist should be used to look more carefully at the selected lenders to see if their great personal loans really are that great. So take the time to contact the lenders directly and ask a few questions.