You hate applying for a bad credit personal loan. You know you have bad credit and the thought of being rejected time and time again has as much appeal for you as a root canal. At the same time, you need to buckle down and do it because you need the money for something, so it's time to look at what options you have.

You probably are assuming that since you already know you have bad credit, if you can find a lender who will even consider approving you, the loan will be at an interest rate high enough to cause nosebleeds. But the truth of the matter is that is pretty much urban legend and holds very little resemblance to the truth of the matter.

You should take time to sit down and understand the WHY behind why you have that bad credit label. It could be for a variety of reasons, many of which are very valid and not even your fault, such as a job layoff, divorce, medical bills, or a myriad of other things that are out of your control. If you've never been in the habit of making timely payments, you need to get there and hopefully you realize that.

But that is the future. You need that loan now, and improving your bad credit label to something better is a long term process. So what can you do right now, keeping in mind your good intentions for the future in terms of paying on time?

Very simply, do comparison shopping. You comparison shop when you make other big ticket purchases like a car or a refrigerator or a stove. You need to do the same thing for your loan. Just like with the other items, comparison shopping means that you do not take the first deal that comes along. You may return to that offer and accept it, but you are not doing comparison shopping if you don't compare loans from multiple sources so that you get a real sense of what your most attractive options are.

Although there is no guarantee, a lot of people have found that getting an online personal loan offered the best rates. They can frequently beat your bank or credit union rates, even if you've been a customer there for many years. Online lenders typically do not have nearly as much overhead costs to pay for to run their core business, and as a result they can pass those savings on to you with more aggressive loans, even if you have bad credit.

Always watch for hidden fees in the fine print. Yes, you are a higher risk because you have bad credit but most companies will not try to make the situation worse with hidden fees. Always be sure to read the fine print so that when you are comparing quotes, you will really be comparing apples and apples.

Compare and shop around. Bad credit is not the end of the world and that situation can be changed in time. But there are lenders out there that still want your business, and you can find them if you put forth the effort to do so.