Bad credit loans are designed for people with a credit report that’s less than spotless, or who have little to no credit history. Bad credit loan is generally easier to obtain than traditional loan. In fact, bad credit loans are available to anyone who qualifies, regardless of their current credit score. However, that doesn’t mean bad credit loans are always easy to obtain.
In fact, most bad credit loans are only available to people with a FICO score of less than 620. If your FICO score is higher than 620, you’ll probably have to settle for a traditional loan. These loans are for people with credit problems, for people who want to boost their credit scores and for people who want to re-establish good credit. A bad credit report is a report from a credit bureau that lists negative information and has a negative impact on your credit score. This can include a late payment, a defaulted loan, a bankruptcy, a judgment or a repossession.
Can you get a loan if you have bad credit?
You’re not alone: according to the Consumer Financial Protection Bureau, about one-third of Americans have a low credit score, and over 30% of Americans have no credit score at all. If you’ve ever been in this situation, you probably know that it can be frustrating and even scary. If you need a loan, but you don’t want to risk hurting your credit more, bad credit loans are a viable option. They’re easy to get, and easier to pay back. All you need is a steady income, a checking account, and a few bills in your name.
How many people have bad credit?
Lucia Jensen, co-founder from WeLoans, said that “It’s true that many people have bad credit. In fact, the number of people with poor credit is much higher than many would expect. For example, a 2020 Experian survey found that almost 25% of Americans have bad credit. A 2021 Experian survey revealed that the average American has $4,955 in credit card debt. However, when it comes to obtaining a bad credit loan, there are a number of things that can cause you to be denied.”
For example, let’s say your credit score is 640 and your income is $35,000 per year. You may still be able to obtain a bad credit loan, but it will likely be more difficult to do. The lower your credit score, the more difficult it will be to obtain a loan and the higher the interest rate will be.