Once upon a time you would have been taken off to a debtor’s prison if you had a bad credit rating and were unable to pay your creditors and your loans. Things have changed and today you can apply for bad credit loans, in other words, “I am a bad credit risk but I want you to lend me some money.” What makes you a bad credit risk? Your credit history is a record of all past financial commitments and your pattern of repayment, as well as an overall look at your total debt load. Credit reference agencies use this information to assess your credit worthiness and assign a credit score. Lenders then use the credit score as a factor in deciding whether or not to underwrite your loan. If you ever wonder about how you got a bad credit history, it’s simple. It was one of these reasons that now put you in the position where you are looking for bad credit loans: You were late making a payment, you missed one or more payments, you defaulted on a debt, or failed to otherwise fulfill a financial contract or commitment. This information was reported to credit reference agencies and thus your poor credit rating. The more of these reports the agencies receive, the lower your credit score and the harder it is to find a loan and the more you will be forced to look for bad credit loans. Other information that can cause a red flag in your credit report includes frequent changes of job or address, or one or more County Court Judgments against you. You ask now if you will be able to get a loan. The good news is that there are many lenders who specialize in working with people who have a bad credit history and offer bad credit loans. You will likely pay a higher interest rate than someone with a good credit history and the amount available for you to borrow will probably be lower. However, once you’ve secured a bad credit loan, you can improve your credit score over time by showing regular, responsible repayment of the loan. Do some research in order to find the most suitable loans and before you submit any bad credit loans applications. Check out several lenders, ask about their interest rates and loan terms, and find out more about their loan process.