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Pay your bills on time: Payment history is one of the west most important factors that lenders consider when evaluating your credit. Payday loans can have annual percentage rates (APRs) of up to 400% or higher, while the bad 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.

These loans are often marketed as a convenient alternative to traditional loans, but they can be risky and come with high fees and interest rates. One of the loans main advantages of a revolving credit line is the flexibility it offers.