What can a person do to get a loan in the market when they have a bad credit rating
. All the person can do is pay all their existing debt on time and make sure that no more defaults and penalties are made. Through this method what the person can do is slowly and steadily improve there credit ratings. This process is a very time consuming process and can take years and even close to a decade for some people to get a decent credit rating in the market. Most people cannot wait for years on end when they need some credit from the market. They have an immediate need while the market would rather they wait for a few years.
Thus what the person can do is go for bad credit loans. In these kind of loans people or individual who have bad credit ratings are also granted loans. Thus the name is like that. These loans are thus a source of hope for many in the market who do not yet want to get involved with local mafia when it comes to financial needs. The money which is wanted is granted to the person and the bank thus gains a few more customers which they otherwise would not have been able to capture.
Also now the person can apply for loans from legitimate sources as they now have a proper source. The person can also make sure that they do not get in trap of loan sharks. Also the Government can somehow reduce the influence of the parallel black economy in the market through these kind of loans. Even though these loans are very expensive with a very high interest rate these loans are still a better choice. With these loans the person can still raise funds from the market inspite of bad credit ratings.