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The lending industry has changed dramatically since our parents' time. Very few people now have what was once defined as "perfect credit." As a result, lenders have significantly broadened how they define bad credit. Loans—whether they're for credit card debt consolidation or a first-time home purchase—now allow for many different qualification criteria.

Not all lenders are the same, however. Be wary of those who promise the moon with bad credit loans, only to pile on the (usually hidden) fees later.