How does it affect you if you have bad credit? For one, you will not be a prime candidate for loans, as banks will naturally distrust your ability to repay them. Having bad credit means you skipped some payments or are already overextended, which makes it less likely for them to finance you. However, there are some lenders that believe that bad credit isn’t entirely your fault and can be caused by incidents outside of your scope of influence. This is why there are some lenders that offer Loans For People With Bad Credit. They allow you to borrow money from them on the condition that the interest rates are higher than usual.