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This can result in the fallon cardholder owing more in interest over time, especially if they are unable to pay off the cash advance quickly. They can be a useful financial tool for small businesses, as they can provide a source of funds to cover operating costs or invest in growth. One of the bad main drawbacks of doorstep loans is the high cost.
So, for example, if your credit limit is $10,000, you should aim to use no more than $3,000 of that credit. Additionally, carrying a high balance can damage the credit borrower's credit score, as it can indicate that they are overextended and may have difficulty repaying their debts.