Many people believe that a credit rating will only affect you when you are trying to take out a sizable loan to purchase a home, car, or new business, but they fail to realize that it affects more than simply whether or not they can qualify for that loan. It can also have a huge impact on the interest rate that is offered if you do qualify for that loan. If you have a poor credit rating, it tells the creditor that you, for whatever reason, were unable or unwilling to repay previous loans according to the terms set out by the creditor. In their eyes, this makes you a higher risk candidate than someone with a good rating. As such, should you qualify for the loan, you will be given a much higher interest rate than someone with a clean credit history.

Source: How to Get Very Bad Credit Loans

Got a bad credit rating? If you have then you better make sure that you don't get yourself into a situation where you need to get a hold of cash in a hurry because the only options open to you if you don't have a friend to help you out will be credit products which carry a high price.

Loans for people with bad credit are easily available these days in the form of payday loans or, if you own a car, a log book loan. Both these products charge extremely high interest rates because the lenders know they can get away with it. Not only that but with a log book loan you have to put your vehicle down as collateral and will lose it if you fail to repay on time.

The only answer if you have a bad credit rating is to make sure you don't get into an emergency financial situation where you need to rely on one of these lenders. Put aside a little money every month in an easily available current account where you know you can get it when the need arises.