5 Mistakes to Avoid When Applying for a Personal Loan
5 Mistakes to Avoid When Applying for a Personal Loan Applying for a personal loan can be a smart way to consolidate debt, fund a large purchase, or manage unexpected expenses. But if you’re not careful, common mistakes can cost you money or lead to rejection. Here's how to avoid them. 1. Not Checking Your Credit Score Your credit score plays a big role in loan approval and interest rates. Ignoring it could mean a surprise rejection or higher costs. Tip: Check your credit score for free via ClearScore or Equifax before applying. 2. Applying for Too Many Loans at Once Submitting multiple loan applications within a short period can hurt your credit score due to multiple hard inquiries. Tip: Compare lenders first, then apply for just one suitable loan. 3. Borrowing More Than You Need Taking out extra cash may seem convenient, but it leads to higher repayments and more interest. Tip: Borrow only what you truly need. Use a loan calculator before applying. ...