1. If you spend more than 50% of your credit limit every month, this indicates to the Credit Bureau that you do NOT have enough cash on hand to meet your monthly expenses. This will identify you as a high credit risk and will actually reduce your credit score by 60 - 70 points overnight (Fair
Isaac).
2. If you miss 1 or 2 payments on your credit card debt, the issuing company will skyrocket your interest rate to a whopping 27% -
30%!
3. Out of a random sample of 3 million American consumers (included in Experian's National Score Index), 51% of them have at least 2 credit cards and 14% of them have 10 or more credit cards.
Getting a $20,000 Bad Credit Large Loan
Debt can leave you feeling desperate, especially if your credit isn’t spectacular. We’ve put together a list of options for getting a bad-credit loan.
Weigh Your Options
Once you’ve decided to get a loan for the purposes of paying down your debt, you then have to figure out which type of loan is best for your individual situation.
Video: Five Ways to Get Out of Debt Faster
Here’s a look at a few different options:
Debt consolidation. A debt consolidation loan combines several short-term unsecured loans such as credit cards and store accounts, rolling them into a single balance. This can often prove the best option for consumers with bad credit and substantial debt, since it not only reduces your monthly payments, but makes managing your debt easier by consolidating everything into one lump sum. According to the Rebuild.org website, you may be able to find the best rate at a credit union rather than a bank. In addition, the site says, it’s smart to shop around to find the best loan for your needs.
Personal loan. Here’s the paradox: Personal loans are far easier to get for people with good credit, but they’re often sought by those whose credit isn’t so spotless. If you’re seeking more than $1,000 and have troubled credit, this may not be the best option for you. In addition, you’ll get hit with fees if you are late on payments or default on the loan, and you may also have to hand over a prepayment penalty if you repay the loan early. Some banks also want collateral for this type of loan.
Payday loan. A payday loan is a small, short-term loan written against your paycheck. Payment is typically due within a week or two. Though these loans are made without a credit check, let the borrower beware: the payday-loan industry remains notoriously unregulated despite government attempts to do so, and interest rates run ridiculously high on these loans. If you’re already deep in difficult-to-manage debt, this is not a wise solution to your problems.
Downsides and Difficulties
Since banks are wary of lending to consumers with damaged credit histories, bad-credit loans come at a price. Since the best interest rates go to those with good credit, you can count on higher rates as well as steeper fees.
You may also find it hard to get a loan these days since banks themselves are troubled. A global recession and credit crisis are making loans difficult to get, even for those with good credit. You’ll need to do your homework to find an institution that is willing to work with your individual needs.
Here are a few banks that often cater to the subprime loan market:
You can also find a more extensive list at CreditSources.org, as well as a host of bad-credit resources at LendersMark.org. As with any other financial decision, make sure a bad credit loan is right for you before signing on the dotted line.
Personal loan. Here’s the paradox: Personal loans are far easier to get for people with good credit, but they’re often sought by those whose credit isn’t so spotless. If you’re seeking more than $1,000 and have troubled credit, this may not be the best option for you. In addition, you’ll get hit with fees if you are late on payments or default on the loan, and you may also have to hand over a prepayment penalty if you repay the loan early. Some banks also want collateral for this type of loan. 
Here are a few banks that often cater to the subprime loan market: 
