A bad credit personal loan is a loan lent to an individual who has a bad credit history either through consistently late repayments or incurring debts.

As a consequence bad credit personal loans are lent out at interest rates at least 2% higher than the market average which provides security for the lender of the loan.

There is typically careful screening of applicants with full credit history, disclosure of savings and income required before approval is given.

These loans are, however, becoming easier to obtain with more lenders prepared to offer bad credit personal loans.