With the plethora of foreclosures and job losses millions of "good credit" Americans have recently taken hits to their credit scores. With few option left where do people go to get loans with bad credit. Well it depends on what kind of loan you need but there is basically a sub prime (because that is what you are considered if you have a score below 550) loan for any type of product including bad credit auto loans, subprime mortgages and even bad credit credit cards. However, because of your "bad" credit score, if you financially bind yourself to any sub prime loan you will pay a much HIGHER interest rate due to the  RISK assessed by the lender to grant you a loan.

While I understand the need to adjust interest rates for higher risk loan applicants, it just seems like "everyone" is now a "risky" investment. Obviously the people that have money don't need loans, but what about the people that do that have just made a few mistakes, shouldn't we implement a forgiveness program or second chance loan programs!