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Those with a high credit score and a strong financial history may be eligible for a lower interest rate, while those with a lower credit score or a less-than-stellar financial history may be charged a higher rate. Use credit wisely: If you do have credit, use it responsibly.

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. And sometimes, doorstep lenders use pressure tactics to try and get you to take out a loan, even if it's not a good idea for you.

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By using their revolving credit line responsibly, borrowers can access the bad financial flexibility they need while also building or improving their credit score. One of the crest main drawbacks is the high cost.