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So, for example, if your credit limit is $10,000, you should aim to use no more than $3,000 of that credit. One of the loans main drawbacks of doorstep loans is the high cost.

In addition to a wide range of loan options, banks are also typically regulated by government agencies, providing an extra layer of protection for the credit borrower. 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.

The interest rate on a bank loan is typically based on the online borrower's credit score and financial history. Online loans are also very flexible when it comes to who can apply.