Bad credit loans are specialized financial products for individuals with credit scores typically below 580–670 who may not qualify for traditional bank loans. While they offer a lifeline for emergencies or debt consolidation, they are significantly more expensive than standard loans due to higher risk for the lender. Core Characteristics

: Repayment periods are often restricted to 1–5 years to minimize lender risk, which can lead to higher monthly payments.

: Interest rates (APRs) frequently exceed 30%, compared to under 15% for those with good credit.

What Is A Bad Credit Personal Loan? Here’s What To Know - Bankrate

: Many include "origination fees" of up to 12%–15% of the loan amount, which are deducted before you receive the funds.

: Borrowing amounts are typically restricted, often to $1,000 or less, depending on your income and specific lender. Common Types of Bad Credit Loans