Bad-credit personal loans offer a lifeline for those needing to consolidate high-interest debt or manage large expenses like emergency home repairs. These loans, available to consumers with credit scores below 630, are unsecured, meaning they don’t require collateral. While they can provide fast access to funds and help build credit through on-time payments, they often come with high interest rates and origination fees. Rates can range between 19% to 28%, significantly lower than payday loans but still costly. Online lenders, as well as local banks and credit unions, offer these loans, with some allowing for rate checks without a hard credit pull. However, the long repayment terms can lead to substantial interest costs over time. Alternatives to consider include borrowing from family or friends, credit counseling services, or secured loans that may offer better terms. It's crucial to weigh these options and consider the potential impact on your financial health before proceeding.
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