What is a “Bad Credit Interest Rate”?
If you have Bad Credit (typically considered a FICO score of 580 or below), it can impact your life in many ways. It can affect your employment opportunities, apartment rental prospects, and more.
To have “bad credit” means you’re considered a riskier--and less creditworthy--borrower than someone with “good credit” (a FICO score of 670 or above). Because you may be seen as someone less likely to pay back what you borrow, lenders will likely charge a higher interest rate to offset that risk.
Bad Credit can be expensive and hold you back in life. So what’s the solution?
The answer is to evolve bad credit into good credit. It can be done, but it always takes time. For more on Bad Credit (and its potential solutions) visit our blog post What is a Bad Credit Loan?