An individual with a bad credit history can not get a loan easily. This is usually a record on how an individual has borrowed and paid money to a financial institution that provides money lending services. A clear credit history shows consistency of payment in periods the correct figure of the borrowed amount, the exact due date, the dates payments were made, amount paid in each date, the interest rates, the sum of the interest and the total amount of money paid at the end. These details determine an individual’s credit score. A credit score is that rating that an individual is given depending on the clarity of the individual’s credit history. This is in two levels; a good credit score or a bad credit score.
 
Unsecured loans approval from money lending institutions most of the time rely on the credit histories to give them confidence in lending money to individuals. This is so because these institutions do not have a security which will compensate for the loans if they are forfeited. Secured loans approval also look at this history but it does not stand as a major requirement and an asset is provided as a collateral thus it can be used as compensation in case the borrower is not able to complete paying the loan.

It is common for individuals especially those who own businesses to need a loan for their business. This instance happens even when these business owners still have an incomplete loan payment. Also, a need may arise for individuals to want to take up personals loans even is these individuals had bad credit histories. These circumstances may be death, accidents or sickness that comes in urgency thus they are eligible in applying for bad credit loans guaranteed approval.