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Payday lenders, on the ak other hand, often require the borrower to have a certain credit score and may also require proof of income and employment. Credit unions may be a good option for those who are looking for a lender that is willing to work with them to find a loan product that meets their needs and budget. Borrowers should also be aware that defaulting on an installment loan can have serious consequences, including damage to their credit score and the ak possibility of legal action.