Consolidating bad credit

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Other options for borrowers with bad credit include secured or co-sign personal loans.

Some lenders say they have no minimum credit score requirements, but that does not mean they don’t check your credit report.

Once the introductory period expires, the rate on a balance transfer card is usually higher than on a personal loan.

In addition to paying off your balance before the rate increases, you’ll want to avoid making further charges.

Such cards have an introductory 0% interest rate, which increases after a promotional period, usually no more than 21 months.

The amount of credit card debt you can transfer is typically up to ,000.

The interest rate depends on your credit profile, and it usually doesn’t change during the life of the loan.

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Below is a list of Nerdwallet’s top lenders for debt consolidation. If you’re borrowing money to pay off debt, a personal loan works best if you have a plan to tackle your debts.

A personal loan offers some advantages over balance transfer cards.

Fixed payments ensure you’ll pay off debt on a set schedule.

Borrowing limits are typically higher; some lenders offer loans of ,000 or more.

In addition, a personal loan may improve your credit if it means your credit card balances shrink relative to the credit limits.

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