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This means that there may be fewer protections in place to ensure that consumers are treated fairly. And if you live in a rural area, it can be hard to find a traditional lending place nearby.

Avoid applying for new credit unnecessarily: Each time you apply for credit, it generates a "hard inquiry" on your credit report, which can slightly lower your credit score. They offer a predictable payment schedule and often have lower interest rates than other types of loans.

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