To find the loan that’s best for you, you should first look at the various types of poor credit loans available. The best loan for you will ultimately depend on what you need the money for and the offers you qualify for. Choosing the loan that will cost you the least in the long run is a wise move. Personal loans allow you to use the funds you borrow for any purpose. You can repair your car, fix a leaky roof, cover an emergency expense, or anything else you choose. It’s worth noting, however, that a bad credit personal loan should not be used as a student loan. Federal student loans and private student loans exist to help people finance their education regardless of credit history. The freedom that comes with these loans is often what makes them a little harder to qualify for if you have poor credit. If you default on your loan, the lender has no recourse, other than potentially selling your debt to a collection agency for pennies on the dollar. These are known as unsecured loans because they have no collateral to secure them in the case of a default. Most bad credit lenders prefer loans that have collateral connected to them, otherwise known as a secured loan, like a few of the options below.