Sometimes, individuals may need a loan but have bad credit. Companies are out there that are willing to issue bad credit personal loans, but often at a huge price. There are loans that Iowa consumers may want to avoid.
One loan consumers may want to avoid is a payday loan. These are designed as small loans that can range from $100 to $1,000 as long as an individual simply shows proof of income. These loans are usually due two weeks later, and if someone only borrowed $400, they will owe the lending company $460. Another loan consumers may want to avoid is a bad credit auto loan, as the interest rates are usually high. One woman took out a $15,000 auto loan for $300 per month, but it would take her 84 months to pay it off.