Bad Credit Loans – All You Need To Know Before Applying

Bad credit loans are a specialist type of loan that helps those of us with a poor credit history. Start rebuilding your credit report today!

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Before applying for a short term loan, please check your finances to ensure that you will be able to meet your repayments. If you are struggling then a bad credit loan may not be right for you.

At Moolr, we specialise in working with lenders who offer bad credit loans.

It is important when considering any service that you understand everything that is described. In this section, we introduce you to the concept of a bad credit loan. We examine what they are, who they affect, and what are the considerations when applying for one.

Acceptance Criteria

Lenders have wide ranging criteria when considering a customer’s application for a short term loan. Ultimately, the ‘acceptance criteria’ determines whether a lender will lend money to someone. This can be anything from the age of the customer (some lenders only lend to those over 30 years of age), monthly income, or the credit history of the customer.

Credit Report

It is the credit history that is key when explaining bad credit loans. This term is used for those of us who have taken out several forms of credit in the past, and more specifically, those who have struggled keeping up with repayments.

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A Loan is Possible

It’s too easy to think that because you have had problems in the past, that you will never be able to obtain credit again. It is true, that finding credit can be harder, but by all means everyone is entitled to a second chance. This is the view of many bad credit loan providers Moolr work with. Most lenders work with a ‘risk score’. This risk score is the mechanism lenders use to determine the credit-worthiness of a customer.

Put simply, how likely they are to be able to repay the loan. This mechanism in not only in place to protect the lender, but also you, the customer. The rules of responsible lending state that lenders should only provide a loan if they are confident the customer will be able to repay. Also that it won’t cause financial hardship to do so.


When considering a bad credit loan in relation to a customer’s risk score, there are a couple of things to bear in mind. Firstly, a lender offering bad credit loans knows what signs to look out for within one’s credit report. This means they are able to offer a loan that other lenders would not be in a position to.

Secondly, you must consider that a risk is just that. Put in simple terms, there is a risk with a customer with a bad credit history that they won’t be able to repay. If this happens, then it can cause a negative marker put on your credit report. Potentially this would leave the lender with no way of recouping their financial outlay. In order to balance out this potential, bad credit loans will often come with a higher APR than for those with a normal, or good credit history. In layman’s terms that we can all understand, it may cost you more to repay your bad credit loan.


Bad credit loans can largely be viewed positively, whilst considering various factors. Financial planning is essential, and lenders who specialise in bad credit loans are in a position to help us get our credit report back on track. Bad credit loan lenders provide us with a ‘second chance’ loan offer. If you successfully repay your loan, then a positive marker is put on your credit report. This will slowly but surely will help you get your credit report, and ability to borrow in the future back on track.

Bad credit loans from Moolr