Bad credits most of the time is as a result of defaulting in making repayments or even making late repayments. This is known to adversely affect a person’s credit history. It is even made worse when the person has bad credit loans because his financial dreams can easily be ruined. People in this category are known to suffer a lot when it comes to accessing financial help as most of the time they are seen as being threats to the institutions.
Despite of all this, there are institutions that do extend loans to elderly people regardless of their bad credit rating. It is therefore possible for people with bad credit to get approved for a loan. Depending on the nature of the loan, the applicant is bound to abide by the laid down terms and conditions which in most cases are affected by the bad credit score.
For instance, elderly applicants with bad credits who qualify for any type of loan always has a high interest rate to pay compared to the applicant with a sparkling history. This is because unlike the other applicant, they are seen as threats and as people who are likely to default again. Additionally, elderly people especially those with bad credit ratings never qualify for huge amounts of loan. They are more often than not approved of minimum loans. This is because they always consider how long the loan has to be repaid and how much the person can easily pay.
The age of the elderly applicant in relation to the bad credit history also affects the amount of loan that can be extended. This is because a person who is very much aged cannot be given a loan that has to be repaid for more than ten years. Therefore the financial institutions always try to safeguard themselves against cases where they have to be forced to write of the loans which are a negative impact to the company. In as much as the possibilities for loans are there, a lot has to be paid in return.