Alternative loans if you have bad credit

0
146

Since they have little to no credit history or have bad credit scores, lenders will be giving them loans with a higher interest rate and a lower borrowing limit. You might think that this is unfair, but it’s not.

For lenders, people on the lower scale in terms of credit score have a bigger chance of default, which is why they outweigh the risks with a higher interest rate and lower borrowing limit.

What is bad credit?

Having bad credit means that lenders and other financial institutions negatively view you as a borrower. With this negative view, you’ll find it harder to find a conventional loan, or if you manage to find one, it’ll most likely have a higher interest rate and lower borrowing limit.

However, you should note that each company or financial institution has different ways of assessing you as a borrower. That said, you can get an idea of how different companies might assess your credit report.

[Read More]