1/12/2010 6:59 AM (PST)

I assume you are in some sort of short term financial crunch? Is this loan needed for debt consolidation? If you are getting behind in your existing obligations you should try to negotiate a payment plan with your existing creditors.

Watch out for unsecured "bad credit" or "personal" loans that are widely advertised on the internet. These are almost always "payday loans" and payday loans are a trap.

Among other risks they will require you to provide your bank account number and other important personal information - it's never a good idea to let anybody be able to tap directly into your bank account. Many internet payday lending outfits are unlicensed and operate on the edge of or outside the law. The Community Financial Services Association is a national payday loan industry association and they require their members (who are all payday lenders) to abide by industry "best practices" (see www.cfsa.net).

If you haven't done so already I would start your journey with a call to a reputable nonprofit credit counseling agency that will identify and explain your options. The counseling session will be FREE. The National Foundation for Credit Counseling's direct agency referral number is 800-388-2227. This will connect you to a reputable, accredited agency in your area.

Also, make sure you review your credit report and make any corrections to incorrect or stale derogatory information in it. Take a minute to read this report from the LABBB on what you should know about your credit report (cut and paste this link into your browser):

http://www.la.bbb.org/GIReport.aspx?DocumentID=165

Good luck!