More than 70 million Americans have bad debt. If you’re one of them, you may wonder if there’s any hope of ever recovering your credit score.

While having a debt go to collections isn’t a good thing, there is good news. Your credit score can recover, and you may still be able to qualify for loans. In fact, you may be the perfect candidate for second chance loans.

What is a second chance loan and who do they help? This quick guide will bring you up to speed on how they could help you recover from bad credit.

Understanding Second Chance Loans

Second chance loans are available to people who don’t qualify for traditional financing. Most often, this means borrowers with bad credit.

• BONSAI FINANCE

  Our take:Online marketplace to find you a personal loan offer that matches your needsAPPLY NOWCredit ScoreLoan Size/AmountLoan TermAPROrigination FeeAll can apply$100 – $15,0001 – 605.99% – 35.99%Varies by lender

Banks and credit unions may not want to finance a loan if you have bad credit. They see you as too much of a risk, especially with the terms they want to impose on the loan.

Second chance loans for bad credit give you both the funds you need and a chance to repair your credit score. They can provide much-needed credit to borrowers like you who may not be able to turn to other sources.

How Second Chance Financing Works

A 2nd chance financing agreement is designed for borrowers with bad credit. The terms are often quite different than what you might see offered by a bank.

These loans are often short-term, meaning you’ll need to pay them back quickly. They may also come with higher interest rates than you’d see at the bank.

Second chance personal loans with bad credit may also mean smaller loan amounts. Like payday loans, they’re designed to help you cover the unexpected costs that crop up. Some lenders will offer higher amounts, so always be sure to do your research.

Give Your Credit Score a Helping Hand

For some, 2nd chance loans may seem like a risky proposition. The truth is, these smaller loans are often more manageable than larger ones you might get from the bank.

• BONSAI FINANCE

  Our take:Online marketplace to find you a personal loan offer that matches your needsAPPLY NOWCredit ScoreLoan Size/AmountLoan TermAPROrigination FeeAll can apply$100 – $15,0001 – 605.99% – 35.99%Varies by lender

By getting a second chance loan and making on-time payments, you’ll begin to repair your credit score. Making regular payments is a huge part of your credit score, so even the smallest monthly payment can go a long way.

That’s why these loans are called second chances. Not only do they help you get the funds you need in short order, they give you a second chance at building a credit score.

In fact, some people even recommend taking out a second chance loan to begin building or repairing credit. You don’t necessarily need to wait until you need to repair a car or have an overdue bill to take one of these loans out.

Get Your Second Chance Now

Rebuilding your credit score can take time, but you can get started right now with second chance loans. Get in touch with the experts and take the first step to repair your credit history.