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Overall, getting a loan from a bank can be a good option for those who need to borrow a large sum of money or who want to take advantage of a low interest rate. Credit-builder loans: Credit-builder loans are small loans that are designed specifically to help people build or improve their credit. Moreover, doorstep lenders may use aggressive sales tactics to persuade consumers to take out a loan, even if it is not in their best interest.

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Peer-to-peer lending: Peer-to-peer lending platforms allow individuals to borrow and lend money to one another without going through a traditional bank. Be sure to review the loans terms and conditions of the loan carefully before you agree to them. Payday loans can have annual percentage rates (APRs) of up to 400% or higher, while the frontier APR on a credit card cash advance is typically around 25% or higher.