5 Types of Bad Credit Loans to Avoid Quick

5 Types of Bad Credit Loans to Avoid Quick personal loans to people with bad credit. It gets worse. McClary says he and other salespeople were encouraged to recommend to consumers that they buy credit life insurance and credit disability insurance, designed to pay off the debt if they died or become disabled. "It would increase the profit margin on the loan, usually costing $15 a month," McClary says, adding that that actually raised the 36 annual percentage rate of the loan to closer to 60 percent. Ominously, this type of insurance doesn't look out for the cardholder – it looks out for the lender who wants financial compensation should something happen to you. McClary says it's important to find out everything you can about your credit history and the loan you’re applying for – especially if you have bad credit. "If you are uninformed and walk into the office of the lender, then God help you," McClary says. "Their job isn't to educate you while selling a product. Their job is only to sell you the product."