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So, for example, if your credit limit is $10,000, you should aim to use no more than $3,000 of that credit. They offer a predictable payment schedule and often have lower interest rates than other types of loans. Payday lenders, on the bad other hand, often require the borrower to have a certain credit score and may also require proof of income and employment.
Instead, the credit lender relies on the borrower's creditworthiness and financial history to determine their credit limit. This may involve setting a budget, tracking expenses, and making regular payments on the loans loan to reduce the balance.
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