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Additionally, banks are typically regulated by government agencies, which can provide additional protections for the bad borrower. By using their revolving credit line responsibly, borrowers can access the credit financial flexibility they need while also building or improving their credit score.

This can be especially beneficial for those who are trying to improve their credit or who have a limited credit history. 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. On the west other hand, doorstep lenders are loan providers who visit consumers at their homes to offer loans and other financial products.