Bad Credit Loans

Information on all things bad credit loans by TheValu. Compare bad credit lenders, their interest rates, and read in depth reviews and advice on bad credit lenders.

Bad Credit Loans 101:

If you find yourself with a bad credit score (300-629 FICO) you are not automatically disqualified from getting a personal loan.

Many online lenders specialize in lending to individuals with bad credit. These lenders still look at your credit score when deciding whether you are eligible, however,  they may consider factors beyond your credit score, making them more accessible than banks.

A drawback of bad credit lenders is that their annual interest rates are typically above 20%.

Why is my credit score so bad?

A credit score is a compilation of your current credit history. Your credit score is monitored and calculated by credit bureaus. Your credit score might be different across the different bureaus. Most bureaus look at the following information to compile your credit score.

  • Payment history (35 %).
  • Amounts owed (30 %).
  • Length of credit history (15 %).
  • New credit (10 %).
  • Credit mix (10 %).

If you neglect to work on your credit in one of these areas you will find that your credit score will drop. For example, constantly having late payments will negatively impact your credit score. Banks, credit unions, and lenders do not like to borrow money to individuals who do not pay back on time.