Some people don't dare to apply for a personal loan online because the have a bad credit rating. They automatically think that if they have bad credit, they can never get a loan. Fortunately this isn't true. However, with bad credit you will most likely have to

• pay a higher interest rate
• accept that you in some cases and from some credit companies you might not be approved
• for the entire amount you were looking for, but at least still be able to get something.

So, if you have a bad credit history you can have a personal loan and you can even use this loan to help increase your credit score. The way to do this is

• make sure that all of your payments are on time
• pay a little more than required each month, if you can do so. This also means that the total cost of your loan will decrease because you'll pay off the loan faster, thus paying less interests.

Other things you can do to increase your credit rate

Allocate some time where you can sit down undisturbed and do the following:

• Write down all your sources of income
• Write down all your expenses like power, rent, mortgage payment, gas bills, dining out, other regular bills etc. - everything you are using your income to pay for.
• Then, go through the list of your expenses and see what you can cut out in order to make your payments on time and even pay a little more each month.
• If you are able to it put a part of the excess money (when you have paid your loan on time and added a little more to your regular payments) in a savings account.

It is easy to apply for your personal loan on the internet. Just be aware that since the internet is a huge marketplace there are some not so good loan companies out there, so keep to recommended loan or credit companies with a great reputation.