Bad debt can happen to anyone even if we do not want it to.  This kind of debt occurs when you stop making payments for the debts that you currently have or if you have defaulted on your debt payments.  The default can be because of making late payments or not paying at all as well as other items such as charge offs and bankruptcies.  It is easy to get a bad credit score but it is not so easy to improve your score and get rid of bad debt.  Improving your credit score and history can take a long time and a lot of patience.

What Is A Bad Debt Loan

            A bad debt loan is a bad credit loan.  These loans are offered to people whom need cash but can not obtain a traditional loan due to their credit status.  These loans can be applied for with or without any collateral being offered to the lender.

            These loans are usually offered through a private lender.  A traditional bank or loan company will typically not lend to someone who has a low credit score.


            The loan amounts are usually going to be found at $1000 to $5000 depending on what type of collateral is offered if any at all.  The repayment term will be anywhere from six months to ten years depending on the amount that is being borrowed.

Where Do I Get This Type Of Loan

            Private lenders who specialize in this type of loan usually do not advertise in many places.  The best place to find these lenders is by researching on the Internet.  There are many different lenders to be found.  The trick is to find the most reputable lender with the best interest rate available.

What Can This Loan Be Used For

            When obtaining a loan of this type many people do not realize they have the ability to use the money for anything they wish.  The loan can be used for debt consolidation, pay unexpected bills, holiday expenses, wedding expenses or even taking a vacation.  The options are endless.  The lender will not care what you are using the money for.  The only thing they care about is whether or not they will be paid back when it comes time for the monthly payment to roll their way.


How To Apply

            Applying for this loan is simple. Once you find the loan that you want to apply for you should complete the application that is found online.  The application will ask you for the basic personal information, the loan amount you are requesting, residential address, employer information, banking information and what an approximate credit score is.  Once all of this has been completed you should submit the application through the online system.  Be careful to read all of the terms and conditions that are given before pressing that go button.  Some lenders will hold you to everything in those conditions even if you did not understand it.


            It is highly recommended to research the loan company that you select in depth.  There are many companies that are out there to scam you and run away with your money.  If possible check with the Better Business Bureau to see if there have been any complaints.  Because you are borrowing money you do not want to end up spending money that you do not have because the research was not completed completely.