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These platforms may be more willing to lend to unbanked individuals who may not qualify for a traditional loan. A credit card cash advance is a service that allows credit cardholders to withdraw cash from their credit card account, while a payday loan is a short-term, high-interest loan that is typically used to cover unexpected expenses or emergencies.

This can make a revolving credit line a more cost-effective option than a traditional loan, where the loans borrower pays interest on the entire loan amount regardless of whether they use all of the money. 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. This means that there may be fewer protections in place to ensure that consumers are treated fairly.