Why should you choose a bad credit loan? Well I have served in the financial industry for many years, so this is coming from the perspective of someone who has been in the business for awhile. bad credit personal loans are great when it comes to payment history, if you can show that you are a responsible lender, then banks will be more likely to loan to you. With a bad credit loan you can help reset your credit, where it will be favorable to lenders. You can eventually get your credit to where bank loans will be no problem for you to get.