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On the loans other hand, doorstep lenders are loan providers who visit consumers at their homes to offer loans and other financial products. This means that if the online borrower defaults on the loan, the lender can seize the collateral to recoup their losses. It's generally a good idea to keep your credit utilization below 30%.

They can be a useful financial tool for small businesses, as they can provide a source of funds to cover operating costs or invest in growth. If the bad borrower consistently maxes out their credit limit and carries a high balance from month to month, they may end up paying more in interest and fees over time.