Do you want to know about loans history and consequence?

Loans are an effective way of solving the monetary issues of the receiver in fulfilling their wishes and happiness. The lender provides a sum of money to be repaid by the receiver some time with the interest. Loans can be of different types some of them are taken after securing collateral like mortgages, some through debit cards, some of them take home loans, some secure personal loans and the list is endless. We will discuss briefly personal loans in this article. We will focus on bad credit personal loan guaranteed approval by the lending bee, and try to find out about the bad credit history


Bad credit refers to your credit reports showing negative credit behaviours for a few days. Usually, when you take loans or credit from a lender, you repay them over a while with interest. There is a hindrance in your payment of the loan or debt, bad credit reign begins.

There are several parameters based on which poor credit is decided:

  1. If you go 90 days or longer without paying the loan, then there is a chance it might turn into poor debt
  2. If you have too many unpaid debts, they will together go into collections which is equally harmful
  3. If you have repossessed a financial property such as a car, boat, furniture
  4. If you are on the verge to apply for bankruptcy relief from debt that could not be repaid.

Bad credit rating

Lenders utilize credit scores or ratings to set the interest rates for the receivers. Credit rating predicts the statistics of a receiver failing to repay the loan. FICO score and Vantage Score model are considered to be the most popular scoring system. The score generated is between figures 300 to 850. If you notch a top score, then the chances of your repaying debts are measured higher.

FICO assigns ratings such as exceptional, very good, good, fair, and very poor depending upon the score range between 300-850. Depending on these4s ranges lenders decide on issuing the kind of credit cards and bonuses to borrowers.

Factors affecting credit rating

Credit entries are certain factors issued in the borrower’s credit report history that affects the credit score generated. These are quite a few roundups of the same.

Late payment this is one of the major impacting credit score factors especially the FICO score. The payment delay of one-day results in the deduction of your score.

  1. Overuse of credit card

Avoid overusing credit cards as high dependency on them may pose as over-reliance on the credit for a borrower. It is advisable to calculate the credit utilization, the formula is available online. A lot of organizations calculate it and determine the score.

  1. Negative implications

negative records such as bankruptcy, repossession can pose a serious threat to credit reports and ratings. The lender in such cases may also shut down the borrower’s account

  1. Short span hogging

It is advised to the borrower from refraining to seek multiple credits in a shorter period of time. Inquiries are carried out to give a final credit score on the same.


There are a plethora of consequences, whilst I have jotted down a few in simple terms for your understanding

  1. Negative credit history may hamper you from borrowing loans or credits in the future.
  2. Often people having a poor credit rating are offered fewer credits or loans in comparison to those with good ratings.
  3. If you suffer from a poor credit score, you will also have to pay an extra deposit for simple services such as renting a car, apartment, and even buying cell phones. You will have to pay extra car insurance for the same.


The aim should be to get a good credit score and lead a peaceful life away from chaos. We have to be mindful of our actions than bearing the repercussions of negligent behaviour. A good credit score undermines a good lifestyle and happiness. Bad credit personal loans are guaranteed approval by the Lending bee if appropriate measures are taken to handle them.