A bad credit loan, to my way of thinking, is the same as a risky loan. For example, you lone money to a friend who says he will pay it back by a certain date and he fails to do so. In fact, he never pays you back. He just never has the money to do so.
When a bank loans money to a prospective house buyer, and the buyer defaults because he cannot repay the loan and the interest on that loan, the bank usually reclaims the home itself. Then it can on sell it to someone else.
But what if the loan made was, say $200,000, the man defaults, and the bank reposses the home, but can only sell it to someone else at $100,000. Then I guess I'd call this a bad credit loan. And I right?
It's a term used by credit lenders. They are saying, you can get credit or loan with our company even if you have a bad credit history. I have family who have done this kind of loan. The only problem with it is you will pay a really high interest rate, because of the risk the company is taking when they loan you the money.
A loan where they charge high interest rates, fees or both to offset the risk of someone not repaying and often charge excessive fees and interest to trap people in a cycle of debt because they cannot pay it off.
For example, car title loans and payday lenders have fees and interest that, if you renew the loan repeatedly, equal 300% of the original loan amount. Borrow $1000, pay back $3000 over the course of a year.
by robj 5 years ago
how can i find a bad credit loan
by McQueen3486 6 years ago
If you still need to find a co=applicant on your application? Isn't the purpose of bad credit financing to help those that don't have that options? Just curious, because my best friend was trying to buy a used vehicle, and she went through a company that caters to those with bad credit, and she...
by Credit Comedy 3 years ago
Has any one found out that you didn't get a job because of your bad credit?
by lovelysand10 7 years ago
what should one do when seeking for a job and have bad credit
by Gous Ahmed 7 years ago
If you pay off credit cards by getting a loan out, aren't you in the same position still?Maybe a loan won't have interest increase like credit cards, but what is the best way to get out of this situation for good?
by clonjaz 7 years ago
I would check out your local Credit Union. It would probably be your best bet.
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