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Instead, try to pay your balances in full each month and only charge what you can afford to pay off. This can be especially beneficial for those who are trying to improve their credit or who have a limited credit history. It's generally a good idea to keep your credit utilization below 30%.

Overall, installment loans can be a useful financial tool for those who need to borrow a large sum of money and want to pay it back over a longer period of time. This can be especially useful in an emergency situation, such as a car breakdown or medical expense. However, it is important for borrowers to be mindful of their spending when using a revolving credit line.

For example, many online lenders do not require a minimum credit score or collateral. Some traditional loans have strict rules about credit scores or needing collateral (like a car or house).