Can you hear the doors slamming? If you have bad credit, the opportunities to get a loan at decent rates are pretty slim. The usual lenders (banks and credit unions) will slam the door in your face if you do not have a credit score well above 600. In this article, we will provide some simple tips to help you get the best deal you can.

Shop around. If your neighborhood has nothing but "pay-day loan stores" who are way too eager to loan you a few bucks this week for a major chunk of your paycheck next week, try going to the other side of the city. Not all lenders are equal. In better neighborhoods, the lenders may be more open to giving you better rates on a loan.

Did you know that there are more pay-day loan stores now than there are McDonalds? The number of these "convenience stores for cash" have grown from near zero ten years ago to over 20,000 today. You know that they must be raking in the cash if they have grown that rapidly.

Check them out. Once you start borrowing from sources that aren't as regulated as banks, the chances of you getting ripped off increase. Check out a potential lender's file at the Better Business Bureau. If they have a reputation as a shark, watch out for the bite.

Read the fine print. Lenders of last resort will probably rush you into signing an agreement without enough time to really understand what you are signing. Make sure you understand how much interest you are paying, and even more importantly, what penalties you will incur if you are late in paying back the money.

Pay on time. If you don't pay back every penny of your loan on time, most bad credit lenders will dramatically increase the interest rate and impose fees that will blow you away. Would you believe 400% interest? It's possible over the course of a year if you don't stay current with your payments.

The most important tip is to fix your credit problems so you won't need a bad credit loan. As you are probably painfully aware, a lower credit score means a much higher interest rate. Credit scores (sometimes called FICO scores) range from a lowly 300 to a perfect 850. Any score under 700 could use some improvement. Start by requesting a copy of your credit report from annualcreditreport.com. This website is maintained by the three major credit reporting bureaus, and it will provide you with your credit report for free, once each year. Work hard to remove negative and incorrect information from your credit report.

Start paying down the balance on your credit cards, and swear off of "pay-day loans." You may have to cut back on everyday expenses in order to free up the cash, but every dollar you put toward lowering your debt is a step toward raising your credit score. Make sure you pay all your monthly bills on time. Just one late payment can undo all your hard work. There is light at the end of the tunnel - the green light of financial freedom. Start heading toward it today.