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These loans often have faster turnaround times and more flexible eligibility requirements than traditional loans, making them a good option for those who have less-than-perfect credit or live in a rural area. The fees and interest rates associated with these loans can be very high, and you may end up paying much more than you borrowed. Some traditional loans have strict rules about credit scores or needing collateral (like a car or house).
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Instead, lenders rely on the bad borrower's creditworthiness and income to determine whether to approve the loan and what terms to offer. And if you live in a rural area, it can be hard to find a traditional lending place nearby. Some traditional loans have strict rules about credit scores or needing collateral (like a car or house).