Over a decade ago, it was almost impossible to get loans with bad credit. People who found themselves with a bad credit score and no money often had to manage without. If that meant being unable to pay for the car to be repaired, then they would have to walk everywhere. If the washing machine had broken down, then clothes would have to be washed by hand. These are not terrible things, but they are annoying, as everyone is now used to the modern lifestyle of using a vehicle, and a washing machine.
Back in the old days, a credit score that was severely damaged meant that loan sharks were doing good business. Some people would borrow of the family, but most were too embarrassed to admit that they had financial problems. The good news now is that thanks to the amount of competition in the loan market, loans with bad credit are now everywhere. Competition is great for the consumer as it helps to keep the charges down off these lenders, and forces them to offer better customer service than their competitors. Although charges are still a lot higher compared with a bank loan, these companies need to account for the higher risk of their clients.
A bad credit loan is something that should only be used in an emergency. The above example of a car requiring a repair is a good one, as having a car is very handy. It may be important to get the kids to school, or a relative to a hospital appointment. What bad credit loans should not be used for is to pay off other debt, or go towards having a holiday. When in debt, money management is very important, and there is plenty of advice online.