{"id":4666,"date":"2026-06-09T08:01:31","date_gmt":"2026-06-09T08:01:31","guid":{"rendered":"https:\/\/www.figuralloans.com\/blog\/?p=4666"},"modified":"2026-06-09T08:01:31","modified_gmt":"2026-06-09T08:01:31","slug":"what-is-the-difference-between-bad-credit-loans-and-very-bad-credit-loans","status":"publish","type":"post","link":"https:\/\/www.figuralloans.com\/blog\/what-is-the-difference-between-bad-credit-loans-and-very-bad-credit-loans\/","title":{"rendered":"What is the difference between\u00a0bad credit\u00a0loans and\u00a0very bad\u00a0credit loans?\u00a0"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Borrowing may sound difficult when you have fractured finances due to poor payment behaviour. They show in your financial records in the form of\u00a0a bad credit\u00a0score. But if the delayed payment record persists, your score turns into\u00a0a very bad\u00a0credit score.\u00a0\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The difference in credit score is the difference in loan types\u00a0<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">People with&nbsp;a bad credit&nbsp;score apply for&nbsp;a bad credit&nbsp;loan. While a person with&nbsp;a very bad&nbsp;credit score needs to apply for&nbsp;a very bad&nbsp;credit loan. It is&nbsp;basically as&nbsp;simple as that, but there are other differences as well.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Read below to know how the two loan types differ from each other.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What are\u00a0bad credit\u00a0loans?<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The loans that are offered especially to people with scores between 561-720 are called&nbsp;bad credit&nbsp;loans. A provable regular income is a vital factor to get&nbsp;<a href=\"https:\/\/www.figuralloans.com\/bad-credit-loans.html\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>direct lender&nbsp;bad credit&nbsp;loans&nbsp;on&nbsp;guaranteed approval<\/strong><\/a><strong>.&nbsp;<\/strong>The loans are typically processed online.&nbsp;No guarantor or collateral is&nbsp;required. But you may include a guarantor if you&nbsp;want to boost approval possibilities.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A bad credit&nbsp;score happens due to the following reasons \u2013&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Credit card debt\u00a0<\/li>\n\n\n\n<li>Missed payments\u00a0\u00a0<\/li>\n\n\n\n<li>Loan defaults\u00a0\u00a0<\/li>\n\n\n\n<li>Irregular payment history\u00a0\u00a0<\/li>\n\n\n\n<li>County Court Judgements (CCJs)\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Despite the above circumstances, you can borrow through&nbsp;bad credit&nbsp;loans. As per the affordability check, if you prove your repayment ability, it is possible to avail funds. This can be proved using your current income status and recent payment record.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If in the last six months you have paid bills and debts on time, the lender will approve your loan application. At least at&nbsp;Figuralloans, current creditworthiness is sufficient for us to approve&nbsp;a bad credit&nbsp;loan.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Features of the loans for\u00a0bad credit<\/strong>\u00a0<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Higher rate of interest as compared to standard loans\u00a0\u00a0<\/li>\n\n\n\n<li>Both employed and self-employed can apply\u00a0\u00a0<\/li>\n\n\n\n<li>Moderate loan amounts\u00a0<\/li>\n\n\n\n<li>Flexible repayment terms\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The loans for poor credit people are&nbsp;mainly&nbsp;used&nbsp;for debt consolidation,&nbsp;emergency expenses, household&nbsp;bills&nbsp;or repair expenses.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is\u00a0a very bad\u00a0credit loan?<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A very bad&nbsp;credit loan is a borrowing solution available to fund seekers with a score between 0 and 560. Such applicants are high-risk borrowers, and strict affordability rules apply as per lending ethics.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is why the interest rate is high, and instalments are big compared to&nbsp;<strong>loans for&nbsp;bad credit&nbsp;with no guarantor from a direct lender.&nbsp;<\/strong>&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Reasons for&nbsp;very bad&nbsp;credit loans are&nbsp;\u2013&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Bankruptcy history\u00a0\u00a0<\/li>\n\n\n\n<li>Multiple loan defaults\u00a0<\/li>\n\n\n\n<li>IVA (Individual Voluntary Arrangement)\u00a0\u00a0<\/li>\n\n\n\n<li>Debt management plans\u00a0\u00a0<\/li>\n\n\n\n<li>Extremely low credit score\u00a0\u00a0<\/li>\n\n\n\n<li>Repeated missed payments\u00a0\u00a0<\/li>\n\n\n\n<li>Multiple loan defaults\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Features of\u00a0very bad\u00a0credit loans<\/strong>\u00a0<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Very high\u00a0rate of interest\u00a0\u00a0<\/li>\n\n\n\n<li>Smaller loan amounts\u00a0\u00a0<\/li>\n\n\n\n<li>Stricter affordability checks\u00a0\u00a0<\/li>\n\n\n\n<li>Shorter repayment terms\u00a0\u00a0<\/li>\n\n\n\n<li>Bigger monthly\u00a0instalments\u00a0\u00a0\u00a0<\/li>\n\n\n\n<li>Limited lender options\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Bad credit\u00a0loans Vs Very bad credit loans<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Here is the clear difference between the two. Read all the dissimilarities here for\u00a0an easier\u00a0understanding.\u00a0\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Factor<\/strong>\u00a0<\/td><td><strong>Bad credit\u00a0loans<\/strong>\u00a0<\/td><td><strong>Very bad\u00a0credit loans<\/strong>\u00a0<\/td><\/tr><tr><td>Credit score range<\/td><td>561 \u2013 720<\/td><td>0 \u2013 560<\/td><\/tr><tr><td>Interest rate<\/td><td>Very high rates<\/td><td>Lower than very bad credit loans<\/td><\/tr><tr><td>Loan amount limit<\/td><td>Moderate borrowing limit<\/td><td>Limited or lower borrowing amount<\/td><\/tr><tr><td>Loan approval chances<\/td><td>Easier as the applicant\u2019s profile is less risky<\/td><td>Strict affordability considering high-risk profile<\/td><\/tr><tr><td>Repayment terms<\/td><td>Longer repayment terms<\/td><td>Shorter repayment terms<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Tips to improve approval chances for both the loan types\u00a0<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The loans may&nbsp;differ considerably, but&nbsp;the tips to boost approval possibilities are the same.&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Compare multiple deals before applying\u00a0\u2013\u00a0<\/strong>A smart borrowing decision is possible only when you compare deals. Choose the one with the lowest APR,\u00a0as that affects your monthly and total cost.\u00a0\u00a0<\/li>\n\n\n\n<li><strong>Avoid multiple loan applications \u2013<\/strong>\u00a0Compare and choose one lender to apply for the loan.\u00a0\u00a0If you apply to many lenders at the same time, it causes multiple search footprints on your credit report.\u00a0\u00a0<\/li>\n\n\n\n<li><strong>Borrow an affordable or small amount \u2013<\/strong>\u00a0The more affordable the loan amount for you, the higher the approval chances. It is one of the most effective application suggestions borrowers should follow.\u00a0\u00a0<\/li>\n\n\n\n<li><strong>Show your repayment plan in your application \u2013<\/strong>\u00a0As both bad and\u00a0very bad\u00a0credit are high-risk profiles, lenders take you as a risky borrower. Therefore, make a repayment budget and mention it in your application. This one small tip convinces lenders about your repayment ability.\u00a0\u00a0<\/li>\n\n\n\n<li><strong>Improve affordability \u2013\u00a0<\/strong>You need to first make sure you have a regular earning\u00a0source with an acceptable debt-to-income ratio.\u00a0Also, your payment record and bank statements for the last six months should be clean.\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Therefore, you can say that\u2026.<\/strong>\u00a0<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">It is possible to get both&nbsp;very bad&nbsp;credit&nbsp;and also<a href=\"https:\/\/www.figuralloans.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>bad credit&nbsp;loans&nbsp;with&nbsp;no guarantor&nbsp;from&nbsp;a&nbsp;direct lender<\/strong><\/a>.&nbsp;As long as&nbsp;you can&nbsp;fulfil the&nbsp;affordability checks, availing funds is&nbsp;hassle-free.&nbsp;Both the poor and&nbsp;very poor&nbsp;credit situation are risky for lenders.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Hence, you need to try hard to prove your repayment ability.&nbsp;If you stick&nbsp;to&nbsp;the basic rules of affordability, it should be sufficient to&nbsp;avail funds. Start preparing for the application on time to avoid last-minute haphazardness and mistakes.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>FAQ\u2019s\u00a0<\/strong>\u00a0<\/h3>\n\n\n\n<div data-wp-context=\"{ &quot;autoclose&quot;: false, &quot;accordionItems&quot;: [] }\" data-wp-interactive=\"core\/accordion\" role=\"group\" class=\"wp-block-accordion is-layout-flow wp-block-accordion-is-layout-flow\">\n<div data-wp-class--is-open=\"state.isOpen\" data-wp-context=\"{ &quot;id&quot;: &quot;accordion-item-1&quot;, &quot;openByDefault&quot;: false }\" data-wp-init=\"callbacks.initAccordionItems\" data-wp-on-window--hashchange=\"callbacks.hashChange\" class=\"wp-block-accordion-item is-layout-flow wp-block-accordion-item-is-layout-flow\">\n<h3 class=\"wp-block-accordion-heading\"><button aria-expanded=\"false\" aria-controls=\"accordion-item-1-panel\" data-wp-bind--aria-expanded=\"state.isOpen\" data-wp-on--click=\"actions.toggle\" data-wp-on--keydown=\"actions.handleKeyDown\" id=\"accordion-item-1\" type=\"button\" class=\"wp-block-accordion-heading__toggle\"><span class=\"wp-block-accordion-heading__toggle-title\"><strong>Can I get approved for a loan with a very poor credit score?<\/strong>\u00a0<\/span><span class=\"wp-block-accordion-heading__toggle-icon\" aria-hidden=\"true\">+<\/span><\/button><\/h3>\n\n\n\n<div inert aria-labelledby=\"accordion-item-1\" data-wp-bind--inert=\"!state.isOpen\" id=\"accordion-item-1-panel\" role=\"region\" class=\"wp-block-accordion-panel is-layout-flow wp-block-accordion-panel-is-layout-flow\">\n<p class=\"wp-block-paragraph\">Yes, you can,\u00a0as some lenders do offer very bad credit loans. But that depends on a strict affordability check.\u00a0<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div data-wp-context=\"{ &quot;autoclose&quot;: false, &quot;accordionItems&quot;: [] }\" data-wp-interactive=\"core\/accordion\" role=\"group\" class=\"wp-block-accordion is-layout-flow wp-block-accordion-is-layout-flow\">\n<div data-wp-class--is-open=\"state.isOpen\" data-wp-context=\"{ &quot;id&quot;: &quot;accordion-item-2&quot;, &quot;openByDefault&quot;: false }\" data-wp-init=\"callbacks.initAccordionItems\" data-wp-on-window--hashchange=\"callbacks.hashChange\" class=\"wp-block-accordion-item is-layout-flow wp-block-accordion-item-is-layout-flow\">\n<h3 class=\"wp-block-accordion-heading\"><button aria-expanded=\"false\" aria-controls=\"accordion-item-2-panel\" data-wp-bind--aria-expanded=\"state.isOpen\" data-wp-on--click=\"actions.toggle\" data-wp-on--keydown=\"actions.handleKeyDown\" id=\"accordion-item-2\" type=\"button\" class=\"wp-block-accordion-heading__toggle\"><span class=\"wp-block-accordion-heading__toggle-title\"><strong>Do bad credit loans help boost credit score?<\/strong>\u00a0<\/span><span class=\"wp-block-accordion-heading__toggle-icon\" aria-hidden=\"true\">+<\/span><\/button><\/h3>\n\n\n\n<div inert aria-labelledby=\"accordion-item-2\" data-wp-bind--inert=\"!state.isOpen\" id=\"accordion-item-2-panel\" role=\"region\" class=\"wp-block-accordion-panel is-layout-flow wp-block-accordion-panel-is-layout-flow\">\n<p class=\"wp-block-paragraph\">Yes, the bad credit loans may have a higher rate. But they are offered through customised deals.\u00a0\u00a0<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div data-wp-context=\"{ &quot;autoclose&quot;: false, &quot;accordionItems&quot;: [] }\" data-wp-interactive=\"core\/accordion\" role=\"group\" class=\"wp-block-accordion is-layout-flow wp-block-accordion-is-layout-flow\">\n<div data-wp-class--is-open=\"state.isOpen\" data-wp-context=\"{ &quot;id&quot;: &quot;accordion-item-3&quot;, &quot;openByDefault&quot;: false }\" data-wp-init=\"callbacks.initAccordionItems\" data-wp-on-window--hashchange=\"callbacks.hashChange\" class=\"wp-block-accordion-item is-layout-flow wp-block-accordion-item-is-layout-flow\">\n<h3 class=\"wp-block-accordion-heading\"><button aria-expanded=\"false\" aria-controls=\"accordion-item-3-panel\" data-wp-bind--aria-expanded=\"state.isOpen\" data-wp-on--click=\"actions.toggle\" data-wp-on--keydown=\"actions.handleKeyDown\" id=\"accordion-item-3\" type=\"button\" class=\"wp-block-accordion-heading__toggle\"><span class=\"wp-block-accordion-heading__toggle-title\"><strong>Are very bad credit loans more expensive than bad credit loans?<\/strong>\u00a0<\/span><span class=\"wp-block-accordion-heading__toggle-icon\" aria-hidden=\"true\">+<\/span><\/button><\/h3>\n\n\n\n<div inert aria-labelledby=\"accordion-item-3\" data-wp-bind--inert=\"!state.isOpen\" id=\"accordion-item-3-panel\" role=\"region\" class=\"wp-block-accordion-panel is-layout-flow wp-block-accordion-panel-is-layout-flow\">\n<p class=\"wp-block-paragraph\">Yes,\u00a0a very bad credit score is the result of severe financial issues like\u00a0multiple loan defaults. Therefore, they come with a higher interest rate.\u00a0\u00a0\u00a0\u00a0<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Borrowing may sound difficult when you have fractured finances due to poor payment behaviour. They show in your financial records in the form of\u00a0a bad credit\u00a0score. But if the delayed payment record persists, your score turns into\u00a0a very bad\u00a0credit score.\u00a0\u00a0 The difference in credit score is the difference in loan &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.figuralloans.com\/blog\/what-is-the-difference-between-bad-credit-loans-and-very-bad-credit-loans\/\" class=\"more-link business-booster-excerpt-btn\">Continue reading<span class=\"screen-reader-text\"> &#8220;What is the difference between\u00a0bad credit\u00a0loans and\u00a0very bad\u00a0credit loans?\u00a0&#8220;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":4667,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-4666","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/posts\/4666","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/comments?post=4666"}],"version-history":[{"count":1,"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/posts\/4666\/revisions"}],"predecessor-version":[{"id":4668,"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/posts\/4666\/revisions\/4668"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/media\/4667"}],"wp:attachment":[{"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/media?parent=4666"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/categories?post=4666"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/tags?post=4666"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}