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There are two main types of revolving credit lines: secured and unsecured. Another benefit of online loans is that they often have more flexible eligibility requirements than traditional loans. Avoid applying for new credit unnecessarily: Each time you apply for credit, it generates a "hard inquiry" on your credit report, which can slightly lower your credit score.

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There are several advantages to getting a loan from a bank. Credit card issuers typically have less stringent eligibility requirements than payday lenders, and the loans borrower's credit score is not typically a factor in their approval.