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What is a bad credit personal loan? Bad credit personal loans are meant for borrowers who have credit scores less than 580. Because poor credit borrowers often become delinquent on their loans by making late payments or defaulting, larger banks are less likely to lend to people below this threshold.

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There are loan options available for you even if you have bad credit. Finding a loan is tough when you have less-than-perfect credit, especially when the minimum credit requirement set by a bank puts a conventional loan out of your reach.