There was a time when falling into bad credit and seeking a personal loan was a significant dividing factor that introduced barriers between individuals and the kinds of financial services they needed; it also created a harmful social stigma. Many consumers have related difficult stories of the embarrassment they have felt upon seeing their credit score decline, feeling  “unwanted” or unable to borrow from major banks, and so forth.


However, social and economic conditions have evolved – especially since the widespread economic crunch of 2008 – and the lending industry has evolved with them to reduce the stigma associated with bad credit, helping to make it easier to recover from, and focusing on efforts to rebuild consumers’ creditworthiness and confidence.

Helping to stop the emotional negativity that can be associated with financial difficulties and periods of bad credit or late repayment is an extremely important responsibility for any lender. Broadly speaking, many lenders – especially have adapted to the situation by realizing that their market has changed, and that by increasing accessibility, providing protection and looking at borrowers from perspectives that are broader than just their credit score, we can help people restore control over their finances bit by bit.

We know that people who have bad credit trouble may get there in a variety of ways:  a divorce, a lost job or an illness, among others. Other times, people begin adult life with a less developed understanding of financial literacy and money management. Many of these challenges are not squarely the fault of the borrower and don’t make them a “bad person”, but they are in the position of having to deal with the consequences, and may thus feel discouraged from getting the help they need.

Putting people back on the path to financial well-being involves a number of steps and processes, not the least of which is working with a combination of best-practices and practical advice with an active consolidation strategy to help reduce outstanding debts and rebuild from a “bad credit” situation. Many people have been in the same situations, and they ought to have options that will help them recover quickly without judgement or criticism, and avoiding exposure to predatory rates that will create further negative pressure on their finances.

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