Bad credit is the inverse of the gift that keeps on giving. Bad credit has a tendency to compound problems on top of one another. Perceptions about a person are based on various aspects of the person’s life. Someone who fails to pay debts or cannot make payment obligations does not exactly impress potential lenders, employers, or landlords. The trouble associated with poor credit leads some to think their lending options are nonexistent. In truth, bad credit loans may be issued to someone whose overall credit score is poor.

Lenders do look at the proverbial “big picture” of a borrower’s credit history in order to make a determination. Bad credit lenders need to check out a proper full history of the applicant’s financial biography in order to make a determination. Troubled borrowers should take this as good news when thinking about applying for a loan.

History Tells A Tale

A credit report tells a great deal about the person applying for a loan. Yes, the final credit score tally reveals all. A person with a very low credit score is a financially-troubled person. The report does reveal how the person got into financial trouble. Someone who defaulted on a $4,000 line of credit at a consumer electronics store is not going to create the same impression as someone who defaulted on $4,000 in healthcare-related expenses. Consumer electronics are luxury items. Healthcare expenses may come unexpectedly and could be unavoidable. A bad credit lender is going to look over the details of the credit history to make a determination.

A person who ran into unavoidable trouble could be perceived as less of a risk. Bad credit lenders may be willing to take a chance on this person. Those borrowers with lengthy credit histories revealing few problems might be in an even better position. Additional resources can be found at

Interest Rates Figure Into The Equation

A person with a poor credit history is not likely to receive a low-interest rate. Bad credit borrowers are risky. Risky loans come with higher interest rates. A person who has bad credit due to defaults on a previous loan are probably going to look at loan offers with very high rates. Someone whose credit card balances maxed out during a period of unemployment may be able to get a loan with one percentage point lower. 1% could turn into several hundreds of dollars saved on the loan over the term.

Take all this as positive news. The outlook on bad credit loans could be better than initially believed.