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Banks may also have more stringent eligibility requirements than other types of lenders, which could make it harder for some borrowers to qualify for a loan. But with an online loan, you can apply from anywhere. Credit-builder loans: Credit-builder loans are small loans that are designed specifically to help people build or improve their credit.

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That means you don't have to take time out of your busy schedule to go somewhere in person. Finally, it is important for cardholders to be mindful of their cash advance limit, as going over this limit can result in additional fees and potentially damage their credit score. There are several reasons why you might consider using a credit union for a personal loan.