Times when Saying No to a Loan is the Most Sensible Thing to do ...


If you don't have cash, you can pretty much get a loan for anything. It's not uncommon for people to get mortgages and auto loans, but you can also get loans to start a business, pay for college or make home improvements. But although there's a bank on every corner, and more than one way to get a loan, there are times when saying no to a loan is the most sensible thing.

1. You're Already Struggling to Pay Bills

If you're just getting by every month and you don't have a lot of disposable cash, getting a loan is a recipe for disaster. It's crazy, but some people get loans when they're not 100% confident in their ability to repay. Remember, just because a lender approves your application doesn't mean you can afford a loan. Lenders only take into account your income and the debts listed on your credit file. If you have high insurance premiums or if you're paying a lot for daycare, this reduces affordability.

You Don't Have a Savings
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