There may have been a time when the banks used to help, but default, account delinquency or bankruptcy mean that this will no longer be the case. The majority of people will now find it very difficult to get a loan with bad credit. Although borrowing money will now be more expensive, extremely bad credit loans are still available. Pawnbrokers, payday lenders and credit unions provide guaranteed cash loans with no credit scoring at any stage of process.

Why are Extremely Bad Credit Loans Still Available?

A poor credit history will show on a personal credit report for a period of 7 years. In the case of chapter 7 bankruptcy, it is 10 years. Bad credit score loans may not be a niche that the banks are particularly interested in, but there are lenders who specialize in assisting customers who have past credit problems. Despite the high default rate among customers, bad credit loan lenders may be prepared to provide a fast cash advance at a rate of interest that reflects the risk they face.