Bad Credit Loan Guide
Bad Credit Loans – The bad news
Have you seen these ads?
Let’s think about for a minute. Why would a bank give you their money when you know you have a history of not paying it back?
Answer: Banks make more money on bad credit loans because they charge more interest.
The bad news about bad credit loans is that generally they will carry higher interest rates than regular loan.
However many banks and lenders will offer you a bad credit loan because they make more money. The higher the risk the bank takes, the higher the interest they charge
When a bank loans you money they concern is not as much how much money they make but whether or not the person they lend it to will pay back the entire ammount.
When you apply for a bad credit loan, the risk not getting paid and that’s why they charge a higher interes rate.