Bad credit loans are a type of loan designed for individuals with poor or limited credit histories. These loans often come with higher interest rates and fees than traditional loans due to the increased risk to the lender. However, bad credit loans can be a valuable tool for those who need to rebuild their credit or who have been denied credit elsewhere.
There are a number of different types of bad credit loans available, including secured loans, unsecured loans, and co-signed loans. Secured loans are backed by collateral, such as a car or a house, which reduces the risk to the lender and may result in a lower interest rate. Unsecured loans are not backed by collateral and therefore come with higher interest rates. Co-signed loans are loans that are co-signed by someone with good credit, which can help to improve the chances of approval and may result in a lower interest rate.