What Are Bad Credit Loans

The term “bad credit loans” is a very simple term. These loans are specifically designed for people with less than desirable credit ratings. Lenders usually base their approvals or denials on the credit rating or credit score of the applicant. If the score is considered “good”, then the applicant will usually be approved for loan proceeds. By the same token, if the applicants score is “bad”, then the lender will most likely deny the transaction.

With bad credit loans Toronto, the lender is taking a chance on the individual. In exchange for this risk, the company may ask for collateral. The borrower may also be required to pay a higher annual percentage rate.

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