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There are several advantages of a credit card cash advance over a payday loan. 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. To avoid these pitfalls, it is important for borrowers to carefully manage their credit line and only borrow what they can afford to pay back.
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Those with a high credit score and a strong financial history may be eligible for a lower interest rate, while those with a lower credit score or a less-than-stellar financial history may be charged a higher rate. Additionally, doorstep lenders may use aggressive sales tactics to convince consumers to take out a loan, even if it is not in their best interest.