Bad credit personal loans are normally made available to help you get out of a bad financial situation. Borrowing money is a fairly common occurrence. This however, also tends to expose us to the risk of defaulting on the payments. When this happens, it is your name that suffers the consequences. The end result is a poor credit rating. By using this facility, one can be in a good position to improve their rating in the eyes of creditors. Having a poor credit rating automatically locks you out of the mainstream loan services. Most of the financial institutions will shy away from engaging with you It should be understood that loans disbursement are usually worked out on the basis of risk. Should ones risk profile go high, they become unfavorable targets. After all, nobody wants to commit their resources where the risk of losing it is much higher than getting it back.

The good news however, is that you can use bad credit personal loans to correct the situation. In as much as their are certain penalties that you will end up paying. The advantages far outweigh any disadvantages. Which in most cases are the high interest rates. The rates are a reflection of your status as a high risk person.

There are a number of conditions that have to be fulfilled before you qualify for them. These are geared towards safeguarding the financial system from abuse. As stated earlier risk is the overriding factor. Therefore, the less it is, the better for everyone.

To be considered, you must have attained the age of eighteen years. This is the legally accepted age of an adult. Anybody who falls below it cannot be considered as eligible to make binding decisions. In the eyes of the law you are a child. Unfortunately the law does not take into account the physical appearance of an individual.

Besides this, you must be a citizen in the country of application. Alternatively, one must at the very least have legal permanent status to enjoy these facilities. This protects the creditors against losing their money to foreigners who take loans then relocate to their countries without completing the payments. In worst case scenarios this can lead to total financial collapse of an economy.

It is also important that you be making a regular monthly income. The overall amount may not matter much, though it will influence the amount that one is considered for allocation. The most important role that this requirement plays is the ability to repay. It might take some time but eventually you will be able to pay.

Naturally because of the increased risk, one should expect to pay slightly higher interest rates. This is more like a charge for causing the creditor sleepless nights. The advantage however is that you can consolidate all your loans into one It is important that you use the money for the intended purpose. This is hardly the time to throw parties for friends. Once you have returned to favorable financial terms one will have the freedom to move.


Savvy investors can make their money work for them even while they sleep, but inexperience with the markets can see your hard earned money disappear in the blink of an eye. Here are 4 golden rules of investing to safely and effectively invest in financial markets:

1. Know your goals:

One of the biggest mistakes you can make is to go get into investing without having a plan in place. Having a goal in mind and analyzing your threshold of risk is the foundation on which you should build your portfolio. Financial markets are not a get-rich-quick scheme. You should outline a target return, asset class and investment period before you take the plunge. The markets can be volatile. Not everyone has an appetite for risk. Carefully asking yourself if you are prepared to assume a higher risk in anticipation of higher returns is one of the 4 golden rules of investing.

2. Do your research:

Fund managers can often talk in confusing financial mumbo-jumbo. Before you commit your money to anything, do some independent research. The Internet has made information available at the click of a mouse. Understand how the markets work and the importance of diversification. Before you invest, you should be able to clearly explain the objectives and risks of the fund or stock in a few sentences to a lay person. Knowing the risks you are assuming and never investing in something you don’t understand is another one of the 4 golden rules of investing.

3. Swim against the tide:

The collapse of the giant investment firm Lehman Brothers in 2008 showed that market conditions and negative news stories can have staggering effects. Going against the herd can often pay rich dividends to investors. Following the hype can prove to be dangerous. One of the four golden rules of investing is to ignore what everyone is interested in and buy a carefully valued, but ignored stock.

4. Understand stock valuation:

Not everything is worth the asking price. Just like you wouldn’t pay $100 for a plastic cup, don’t overpay for a stock based on assumed returns or prospective future growth or simply hype. Judge and value the stock you’re investing in based on fundamentals like the merits of the company rather than economic conditions or momentum. Waiting for the right opportunity to buy a good stock at a reasonable price is another one of the 4 golden rules of investing.

It is important for investors to adopt a disciplined approach to managing their portfolio. The markets fluctuate – that is their nature. Patience is a virtue when it comes to investing. With realistic expectations and some careful decisions, the financial markets will reward you with much, much more than your investment.