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Borrowers should also be aware that defaulting on an installment loan can have serious consequences, including damage to their credit score and the bad possibility of legal action. Instead, the loans lender relies on the borrower's creditworthiness and financial history to determine their credit limit.
While these loans may seem convenient, they often come with high fees and interest rates, which can make them difficult to repay. Research payday loan lenders: Look for a lender that is licensed to operate in your state and has a good reputation.