May 25, 2024

Mistakes Made in Loan Application

In this article titled “Errors in loan application”, we will touch on important issues for those who want to take out loans and those who are considering taking a loan, to be informed and benefit from this move before making this move. Before applying for a loan, it is necessary to scrutinize it frequently. First of all, you have to decide whether you really need a loan. If you can pay your debts by structuring without taking out a loan, we recommend that you first take the necessary steps to implement this method.

What are the mistakes made in the loan application?

Taking loans out of need; Many people in our country make the mistake of taking out a loan even though they do not need it. It will be the right move for you to decide after a good brainstorm whether you really need a loan. Otherwise, it will cause you to go into debt unnecessarily, to spend the amount you have withdrawn to irrelevant places, and most importantly, to pay unnecessarily credit costs and interest.

Obtaining credit by research; Just as we compare the prices of several markets while shopping for groceries at home, and do our grocery shopping from the most suitable place, we should use the same method for credit. We should compare the interest rates of the lending banks and take a loan from the bank that offers the most suitable interest option. Each bank determines its own interest rate and makes its customers use loans at this interest rate.

Applying to multiple banks; One of the biggest mistakes people make in our country while taking out loans is applying for loans to many banks. So much so that there are those who apply to other banks without waiting for a bank’s loan approval. Applying for a loan also means making a credit rating inquiry . As such, a person who constantly questions his credit score creates a negative image financially. If you are making loan applications to research the interest rates of banks, you can use loan calculation tools before applying.

Not being able to determine the loan installment amount correctly; You should determine the installment amount of the loan you want to withdraw, that is, the maturity of the loan. For example, instead of paying the amount you will withdraw as 10 thousand TL in 48 months, if you can pay in 24 months, you should definitely choose the one with less maturity. In this way, your debt will be paid off sooner and you will be freed from the burden of long-term interest and file costs.

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