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Online loans are also very flexible when it comes to who can apply. Banks may also have more stringent eligibility requirements than other types of lenders, which could make it harder for some borrowers to qualify for a loan. These might seem like a good idea because they come to you, but they can actually be risky.
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Lender also typically checks the bad borrower's credit score and financial history before approving the loan, which can help to reduce the risk of default. Borrowers should also be aware that defaulting on an installment loan can have serious consequences, including damage to their credit score and the credit possibility of legal action.
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