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Learn more about managing your credit and improving your credit score. For example, many online lenders do not require a minimum credit score or collateral. Overall, there are options available for unbanked individuals who want to access a credit line.

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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. For example, if the bad borrower has a credit limit of $10,000 but only borrows $1,000, they will only pay interest on the $1,000 that they borrowed. Personal loans can be used for a variety of purposes, such as consolidating debt, financing a home improvement project, or paying for unexpected expenses.