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If the bad borrower consistently maxes out their credit limit and carries a high balance from month to month, they may end up paying more in interest and fees over time. These might seem like a good idea because they come to you, but they can actually be risky.

Additionally, banks are typically regulated by government agencies, which can provide additional protections for the credit borrower. History at all, a secured credit card may be easier to get approved for than a traditional credit card.