Key takeaways Bad credit loans typically have higher interest rates and fees, so it’s important to calculate the total borrowing cost before accepting an offer. Many lenders consider factors beyond your credit score, including your income, employment history and debt-to-income ratio. Legitimate lenders won’t guarantee approval or ask for upfront payment before funding your loan. Personal loans for bad credit are designed for borrowers with credit scores of  580 or lower. While these loans make financing accessible if you don’t qualify with a traditional bank, they often come with higher costs and stricter terms. When you’re ready to borrow, be sure you understand how subprime lenders evaluate borrowers with bad credit and how those decisions affect the total amount you’ll repay. What are bad credit loans? Bad credit loans are a type of personal loan, but because lenders take on more risk, they often have higher interest rates and fees.…