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Common Mistakes to Avoid When Applying for a Personal Loan

  • Not Comparing Multiple Lenders: Interest rates and fees vary widely. Always shop around.

  • Ignoring Fees: Origination fees, prepayment penalties, and late fees can add up.

  • Taking a Longer Term Than Needed: Lower monthly payments might seem attractive, but they result in paying more interest over time.

  • Applying for Too Many Loans at Once: Multiple hard inquiries can lower your credit score.

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