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And if you live in a rural area, it can be hard to find a traditional lending place nearby. And once you are approved, the dry money can be transferred into your bank account in just a few hours or days.

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. To avoid these pitfalls, it is important for borrowers to carefully manage their credit line and only borrow what they can afford to pay back. Use credit wisely: If you do have credit, use it responsibly.