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Just be sure to do your research and compare offers from multiple lenders before you decide which one to use. Borrowers should also be aware that defaulting on an installment loan can have serious consequences, including damage to their credit score and the costa possibility of legal action. As a result, they may be able to offer lower interest rates on personal loans than banks or other for-profit lenders.

One of the credit main drawbacks of doorstep loans is the high cost. Peer-to-peer lending: Peer-to-peer lending platforms allow individuals to borrow and lend money to one another without going through a traditional bank.