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These loans often have much higher interest rates and fees than online loans or traditional loans, which can make them difficult to repay. Cardholders should also be aware that using a cash advance on a credit card can be a sign of financial distress, which can impact their credit score and their ability to borrow money in the loans future.

This can result in the bad cardholder owing more in interest over time, especially if they are unable to pay off the cash advance quickly. Overall, there are options available for unbanked individuals who want to access a credit line.