These loans are meant for borrowers whose bad credit ratings make it very difficult for them to obtain a mortgage loan or personal loan from traditional lenders. These installment loans for bad credit are usually referred to as: Timely payment reward mortgages or affordable merit mortgages. Also, the personal loans for people with bad credit are called bad credit loans, poor credit loans, emergency loans, etc.
All bad credit loans share some common elements. For example, all of them are available at a higher interest rate than traditional loans (if the borrower remains punctual in paying all installments for the first 24 months, then the interest rate on these bad credit personal loans may decrease).