It is inevitable that you will take some or the other loan at any given point of time in your life to meet a certain financial need. This may be a asset-based loans such as a home loans or other types of loans such as a personal loan or an educational loan. However, any loan that you take will have an impact on your credit score. So, before making a decision, first sit down and take a look at the common loan mistakes that you should avoid at any cost in your life.
- Not comparing interest rates: Different banks have different lending rates, and before you go ahead and apply or a loan, it is a must to sit down and compare interest rates.
- Choosing the first lender that approaches you: You really want a loan and then a lender approaches you, you say yes and feel like it's the best deal for you!
- Unplanned financial decisions: A loan is not money that gets credited to your bank account for free. You are not shopping for money, so do not go on a shopping spree!
- Defaulting payments: This