5 things you should not do to get a personal Loan

Never run out of cash with fast cash personal loan

If you are looking for instant funds, an online personal loan is one of the best facilities you can avail in the current times. With easy access to the internet, things have become more accessible and convenient. Therefore, we at Stashfin have only one motive in mind, to offer feasibility and convenience to all its customers as well as potential customers.

Along with our official website, if you are looking for such a loan, you can also download our application from Play Store or App Store as per your device. 

What is a personal loan?

It is a type of loan that individuals can borrow from a financial institution to meet their personal financial needs. Unlike a car or home loan, where the borrower is bound to use the money for a specific purpose only, this type of loan is quite flexible and can be used for any purpose. This includes consolidating debt, paying for medical expenses, financing an event/wedding, or even taking a vacation. 

These loans are typically unsecured in nature, which basically means that they are not backed by collateral like a car or house. Instead, lenders evaluate the borrower’s creditworthiness based on certain factors such as credit history, income, debt-to-income ratio and employment stability. As a result, the rate of interest and terms offered to an individual are often based on their creditworthiness, with borrowers having better credit usually receiving more favourable terms. 

What are the 5 things you should not do to get personal loan?

  • Miss or Delay Payments

Avoid late payments or defaulting on your existing debts, such as bills, ongoing loans or credit cards. This is because lenders consider your payment history as an indicator of your ability to repay debt. Therefore, a consistent record of timely payments clearly demonstrates financial responsibility. 

  • Apply for Multiple Loans

Applying for many loan applications within a short span of time can definitely impact your credit score in a negative way. So, it is essential to first research lenders and compares every factor before applying. 

  • Inaccurate information

Providing wrong and inaccurate information about yourself can lead to severe consequences. Therefore, be truthful and accurate about every information when you apply personal loan. Details include income, employment status, financial obligations etc. 

  • Max Out Credit Cards

Running up high balances on your credit cards also increases your credit utilization ratio. This measures the amount of credit you use compared to your total available credit. Lenders prefer borrowers with a low credit utilization ratio, so make sure that you avoid maxing out your credit cards before applying for the loan. 

  • Make Major Credit Changes

Before applying for a loan, avoiding making significant credit changes, such as opening or closing credit accounts, is advisable. This is because it affects your credit score and raises certain concerns for lenders. 

In order to avail loan from Stashfin, a personal loan app, you, as a potential borrower, just need to follow certain steps. Four simple steps, and you are more than good to go.

  1. Download the app 
  2. Sign up using your mobile number
  3. Add your details to check credit limit
  4. Complete KYC!

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