Making Too Many Applications At A Time
It is a false notion that if you make multiple loan applications at a time, one of them would be approved. Rather, there are chances of all your loan applications getting rejected and even your credit score being impacted.24 Feb, 2023 Sankunni K
Not Choosing Repayment Tenure Wisely
One of the most important factors to keep in mind while applying for a loan is to choose your repayment tenure. If you consider choosing a longer repayment tenure thinking the monthly EMI would be less, it may end up taking a lot of interest from you.24 Feb, 2023
Having Multiple Personal Loans At A Time
If a lender doesn't sanction you the required money, it's not advisable to apply for another loan. This may portray you as credit-hungry and cause damage to your credit score. Moreover, you might be pressurised under heavy debt because of multiple active loans.24 Feb, 2023
Not Going Through The Fine Print
This happens very often to first-time borrowers. Your lender would only provide you the basic information of the loan over a call. However, in the loan document, there would be a number clauses that may lead to an increase in your repayment amount that what you expect.24 Feb, 2023
Spending Loan Amount On Speculative Acts
Even though there are people who raised money through loans and invested it in stock markets or other investment areas and won big, it's very risky too. Sometimes, you may lose everything you invested in the stock market leaving you under a huge loan burden.24 Feb, 2023
Not Paying Dues On Time
Never skip an EMI or do late payment. Doing that will affect your credit score. Apart from that, lenders would be reluctant to give you loan in the future.24 Feb, 2023
Not Comparing All Loan Offers
You should make sure that you've compared the pros and cons of all the loan options before availing one. If you can't understand the technicalities, take the help of an expert to scrutinise all aspects including processing fee, foreclosure charges et cetera.24 Feb, 2023
Borrowing More Than What You Need
Based on your salary/income and credit history, lenders may offer huge amount as personal loan. However, you shouldn't go for more than requisite amount. It's wiser to take a small loan to meet immediate expense rather than taking a hefty loan and defaulting payments.24 Feb, 2023
Not Checking Your Credit Report
The approval of a loan depends much on your credit score. If your credit score is low, the chances of getting your loan rejected are high.24 Feb, 2023