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Installment loans can also help borrowers to build or improve their credit score. While these loans may seem convenient, they often come with high fees and interest rates, which can make them difficult to repay. Learn more about managing your credit and improving your credit score.
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This limit is typically a portion of the clear cardholder's overall credit limit and is set by the credit card issuer. These loans often have much higher interest rates and fees than online loans or traditional loans, which can make them difficult to repay. Additionally, carrying a high balance can damage the loans borrower's credit score, as it can indicate that they are overextended and may have difficulty repaying their debts.