Low credit personal loans allow consumers who have a lower score or no history to apply for immediate financing to cover essential bills. With a low rating, higher interest rates will be charged, but with each successful payment, ratings can improve—letting some believe that a low credit personal loan can lead to possible financial relief. To undertake the process of borrowing money without financial counseling and/or debt management consultation is not wise. Borrowing money has a definite risk of causing further financial failure which can take many years to overcome and may prevent qualifying for future home purchase financing. Personal financing should be considered for necessities, not discretionary spending. The terms of the financing, the rate of interest and the very important option of refinancing later, should all be compared and negotiated with a lender so that a borrower has the best program possible.This type of personal borrowing may require some type of security or collateral to lower the interest rate charged. If that collateral is the family home, the purpose of the low credit personal loan should be significant enough to warrant the risk. Excessive debt is risky, especially if the borrower has an income that barely meets the minimum payment requirements. Some surveys estimate that the average American family spends 110% of their disposable income. This is due to the opportunities for spending that easily accessible credit offers. Low credit personal loans should not be a resource for keeping a “buy now, pay later” cycle of debt that may result in loan defaults or home foreclosure. Jesus said, “Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt, and where thieves break through and steal: But lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal: For where your treasure is, there will your heart be also.” (Matthew 6:19-21)Most financing is governed by credit ratings determined by three different agencies. These agencies are Experian, Equifax, and TransUnion. They evaluate a borrower’s capacity to pay (income and debts), collateral (assets owned), and personal character (based on timely payment of bills and employment history). If any of these three factors have been compromised, credit agencies can downgrade the low credit personal loan rating using a numerical score called FICO. It is very hard and time consuming to challenge or change a rating once it has been lowered. Low credit personal loans have more expensive interest rates and that is the consequence one pays for lower ratings. Borrowers can (and should) be aware of their own credit history, rating, and the circumstances that might have contributed to the problem before seeking personal financing. It is better to know all the options when seeking a lender than be talked into inappropriate financing that will not be conducive to the main goal.