This applicant is really dreaming when he is asking for a low APR loan for someone with bad credit. The reality is that once your credit rating tanks, not only is it difficult to find a low APR loan, it is difficult to find a lender that will lend money to you at all. Fortunately there are lenders that will consider applicants like the one we are discussing, but they do charge a very high interest rate.
In the table at the bottom of this post we have shown the interest rate impacts for someone who can borrow money at competitive low APR’s vs. those that are paying credit card rates. Bad credit loans can have even higher APR’s which we did not show in this particular table. It does sound like this applicant is getting back on the road to recovering his credit rating. If he can keep this job and meet all of his monthly expenses along with any debt that he has, he will be able to rebuild his credit rating. Once he does he can qualify for low APR loans. This may take several years.
In the mean time he will have to stick with high APR loans for people with bad credit and continue dreaming about better rates for loans. He needs to focus on making sure that all debts and monthly payments are always paid on time and he also needs to rebuild an emergency fund to help him deal with emergency cash flow situations which is what he is dealing with now.