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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 loans APR on a credit card cash advance is typically around 25% or higher. 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.
Additionally, doorstep lenders may use aggressive sales tactics to convince consumers to take out a loan, even if it is not in their best interest. This limit is typically a portion of the bad cardholder's overall credit limit and is set by the credit card issuer.