personal loan with bad credit Get A Loan with Bad Credit- Different Solutions A bad debt loan is a short-term financial solution for consumers who need to borrow money but have bad credit or history. Loans with low credit quality are because borrowers have a "bad" credit rating and therefore have to deal with very high-interest rates when they apply for a loan. If used correctly, bad credit loans can be the starting point for financial consolidation, improving your credit rating and making you a more attractive borrower. Bad debts have high- interest rates and short maturities, usually from a few weeks to five years.