If I Have Bad Credit, Is It Possible To Get the Lowest Interest Rate Possible?
Probably not. Of course, the term “bad credit” is subjective and means something different to every person and every company, therefore, there is no clear-cut or consistent description. However, using generally accepted principles and guidelines with respect to an applicant’s credit score and history, there are several basic assumptions that you can rest assured will be shared by nearly every lender. Since your credit history is the only method of examining your repayment track record, it is the major point of focus for all lenders.
The Lower Your Credit Score, The Higher Your Interest
A damaged credit history will undoubtedly be a cause for concern for any lender, and therefore will be interpreted as a potentially higher statistical risk that you will not pay them back. The lender’s concern over your past will be reflected in the interest rate they offer you in connection with a loan. The rule of thumb is that the worse your credit history is, the higher your interest rate will be.
