6 Mistakes you should avoid for applying a personal loan

27 Sep 2021

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Many of us prefer personal loans due to its flexibility and most importantly, no collateral and guarantor are required. Loan processing will also be less hustle. However, even if you need urgent financial help, don’t rush to make a decision without doing the background checking. You might face losses that will affect your financial status in the long run.

 

So, before you apply for personal loans, make sure that you are alert and avoid these 6 top mistakes.

 

1.Borrowing More than you actually need

A higher loan amount would translate into a higher repayment and interest in a long run

 

2.Being ignorant about your credit score

Credit score is important as it describes your repayment behaviour in which banks pay most attention to

 

3.Borrowing from unlicensed or illegal money lending

There money lending are not government by KPKT so they can do anything to their client

 

4.Using your name as a borrower

It is always good to help a friend or family member, but be extra careful when it comes to finance as you have to bear the risk

 

5.Blindly becoming a Guarantor

You will be liable for legal actions by the court if the debtor failed to pay the debts

 

6.Not examine the terms of financing offered

Be careful when you’re applying Loan. Be sure to understand all the terms to avoid any disagreements in the future