| Description: | A bad credit loan is a loan that caters to borrowers with FICO scores below 580 — though some lenders consider credit scores into the low-600s bad. They are designed to serve as a funding option if you need a loan but have past credit issues. Bad credit loans offer convenience for borrowers who may not be able to qualify for other options. Lenders may limit how much they’re willing to lend to a bad credit borrower compared to a good credit borrower. That’s because borrowers with a history of running into credit trouble are more likely to default, so lenders often cap the loan amounts to reduce their risk. You may not be eligible for a term of five or more years if you have a bad credit history. Bad credit loan lenders may prefer you pay your loan off faster to reduce the odds that you’ll default over a longer time period. Use a personal loan calculator to make sure the payment fits into your budget. |
