Why Use Loans for Bad Credit?

I had always been wary of loans for bad credit. On most financial news pages online, you’ll find links to any number of stories that say bad credit loans are a terrible idea and no one should use them. Oh how easy it is for well-paid financial pundits to criticize a product they will never have to use! If we could all choose without penalty then no one would choose a higher-interest rate short-term loan, but the fact is that these loans exist because (often through no fault of their own) more and more people are ineligible for regular loans as they are deemed to pose a credit risk to lenders. Lenders offering sub-prime or “bad credit” loans such as First Choice Loans are becoming popular online because more people than ever before need their services, partly due to a failing economy and also because of poor education in finances. (Thanks to the have it now! attitude)
I fall into the high-risk debtor category largely due to the fact that I draw a monthly disability check. I was working in a secure, well-paid industry until I developed health issues that left me unable to work. My income dropped considerably and although I economized where possible, my financial struggles still impacted my credit score, and made me a less-than-attractive prospect for my regular lender.
I had no choice but to explore loans for bad credit when I had to cover extensive repairs on my car, andĀ First Choice Loans were the lender I turned to. I was impressed by the transparency of their services and the fact that I was able to apply quickly online. They didn’t disappoint! I got my money the next day and was able to get my car back up and running, I couldn’t manage without it as I can barely walk 100 yards unaided. I really didn’t find the repayments difficult, First Choice Loans had examined my situation and set the installments to an amount I could afford comfortably. Honestly, I found their service a lot more personalĀ  than a regular lender. Knowing I can get a loan when I need it has alleviated a lot of stress for me.
I’ve since learned that each loan for bad credit that I take out and repay on time will count towards me being seen as a lower-risk customer and that means lower interest rates.
The reality is that while bad credit loans may be seen as bad news by the lucky few who have no black marks against their name, many people have come to rely on them to cover essentials. I resent the inference that poor credit is the fault of the customer. No, it isn’t.. not always. And even if someone mismanages their money and ends up in trouble there can be many reasons this has happened, poor education, financial ignorance and societal pressure all play a part and I think it is lazy and demeaning to stigmatize people when you have no real idea of the struggles they face.
Lenders who seek subprime customers are not “preying” on them. They are providing a service for many millions of people who don’t have the luxury of financial security.