Bad Credit Loan

Importance: 0.57

Is a company: no

Is a proper noun: no


  • sub-prime loan

Definition of Bad Credit Loan

  1. A loan made out to an individual or entity with a bad credit score. In addition to charging those with bad credit a higher interest rate, lenders often require the loan to be secured with some form of collateral.

Related Terms and Acronyms

  • Bad Credit Bank,
    • Someone who carries a higher credit risk.
  • No Credit History Bank,
    • To have no record of an individual's credit worthiness.
  • Title Loan Bank,
    • A loan that uses a car as collateral.
  • Collection Bank,
    • The efforts used to bring an overdue mortgage, or other debt current, and the filing of necessary notices to proceed with foreclosure when necessary.
  • Guaranty Bank,
    • A promise to assume responsibility for a debt if the borrower defaults.
  • Delinquency Bank,
    • Failure to make mortgage payments when mortgage payments are due.
  • Default Bank,
    • When a borrower fails to fulfill the obligations of a loan or lease.
  • Secured Loan Bank,
    • Borrowed money that is backed by collateral.
  • Foreclosure Bank,
    • The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.
  • Credit Rating (CR) Bank, Very Important,
    • A judgement of a person's ability to repay debts. The rating is often based on a person's current and projected income and past debt payment history. Also called a credit score.
    A metric to measure the credit worthiness of a debtor.
  • Secured Credit Card Bank,
    • A credit card that a cardholder secures with a savings deposit to ensure payment of the outstanding balance if the cardholder defaults on payments. It is used by people new to credit, or people trying to rebuild their poor credit ratings.
  • Credit Bureau (CB) Bank, Very Important,
    • A company that collects and sells information about how people handle credit. It issues credit reports that list how individuals manage their debts and make payments, how much untapped credit they have available and whether they have applied for any loans. The reports are made available to individuals and to creditors who profess to have a legitimate need for the information.
    Company that determines one's credit worthiness.
  • Sub-prime Borrower Bank,
    • A borrower with a less-than-perfect credit report due to late payments or a default on debt payments.
  • Predatory Lending (PL) Bank, Important,
    • Lending practices that are unfair, deceptive or fraudulent.
  • Loan Shark Bank,
    • A lender that provides loans at usuriously high interest rates, often ensuring repayment with the threat of force.
  • Sub-prime Mortgage Definition, Important,
    • A mortgage loan that is granted to a borrower who is considered sub-prime (has a less-than-perfect credit report). Sub-prime borrowers have either missed payments on a debt or have made late payments. Lenders charge a higher interest rate to compensate for potential losses from customers who may default on the loan.
  • Credit Worthiness Bank,
    • How likely an individual or entity is to default on their debt.
  • Good Credit Bank,
    • Someone who carries little credit risk.
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