A bad credit history is like having contracted an infectious disease. At least this is what most lenders perceive. Any requests for installment loans for bad credit by people with a bad credit history are generally declined. They are charged an extravagantly high rate of interest, if advanced personal loans.
What these lenders fail to recognize is that the people who are currently rated as a bad credit case were sometimes having a good credit history. Some acts of the past, which were sometimes inevitable, became the reason for theirs being tarnished with bad credit.
It will be illogical to punish the people for acts of the past. Besides there are few means to guarantee that a person otherwise rated as a perfect credit case, may default on the loan.
Lenders have slowly started accepting the fact. The growing number of people falling in the trap of bad credit has brought home the fact that they cannot do without doing business with these people.