Bad credit loan is a term for a loan given by a lender to someone who has negative information on their credit report and/or a low FICO score. There are financial institutions who specialize in these types of loans. They make money by charging higher interest rates and fees on the loans. The higher rates compensate for the added risk of lending to a person with bad credit.
Some lenders specialize in bad credit equity loans and bad credit mortgages. However, before you give up and go with a lender that specializes in bad credit we recommend that you learn about your credit situation. Read though our section on managing and repairing your credit. Create a solid plan to improve your financial situation.
