Bad credit personal loans are the personal loans that are provided to the people with a bad credit history. Credit history of a person is the record of his previous loan repayments and his credit card payment. A good credit history is when a person has paid all his loan and credit card payments on time and A bad credit history is when a person has not paid all his loan and credit card payments on time or even worse didn’t peid them at all. A person with a good credit history is more likely to get a personal loan at lower interest rate and faster than a person with bad credit history.
Bad Credit Personal Loans
For any person it is not a good thing to have a bad credit history as it may even result in him being blacklisted that may lead to him getting no loan any where. In India the credit history of an individual is maintained by CIBIL, which is a financial record keeping facility. Every bank refers to CIBIL before lending loan to any applicant.
There are banks that have some scheme to provide personal loans to persons with bad credit history. These are often considered by banks as riskier loans as the chances of loan being repayed are low. In such cases the individual with a bad credit history should have a solid reason for not repaying the previous loans and should provide for collateral or a gaurantor with a good reputaion with the bank and a good credit history. Even after he provides all these, the rate of interest for the loan will be higher than other individuals with a good credit history and the processing time will also be higher. The amount of loan will also be lower.