No, it is not compulsory. The interest rates are one of the main concerns of the borrowers when they are making selection of the loan offer. Applying for the loans can only be beneficial if it does not involve any extra burden. At the same time, the low or high interest rates are also determined through the borrowers’ financial capacity and their credit scores. For those with good credit scores really enjoy the benefit of lower rates, but the situation becomes completely different when someone seeks loans for people with bad credit score.

Confusion around the interest rates should not go for long. It needs to be rectifying at earliest. Thus, the borrowers should understand that these short term loans for bad credit always carry interest rates on the higher side. It is not necessary that borrowers have bad credit and they have to pay higher than others do.

One more important thing to understand is that the borrowers should have a back up of a guarantor and they should be employed while submitting the applications. These are the crucial factors in lower down the interest rates. Some lenders may also ask for the collateral, but it is not mandatory at all.