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This can make a revolving credit line a more cost-effective option than a traditional loan, where the bad borrower pays interest on the entire loan amount regardless of whether they use all of the money. Credit-builder loans: Credit-builder loans are small loans that are designed specifically to help people build or improve their credit.
Overall, getting a loan from a bank can be a good option for those who need to borrow a large sum of money or who want to take advantage of a low interest rate. Make sure to pay all of your bills on time, including credit card bills, utility bills, and other recurring payments.