I know a lot of people are tempted to get personal loans for various reasons and most banks are more than happy to sign people into them, even with higher costs and rates. I think it is important that before you get a personal loan, you figure out what you can afford. Banks will always be willing to give you more than you can handle so don't fall into that trap.
I agree with this for sure. I know there are people out there who just hand loans out like candy knowing half the people they give them to will fail. I don't even know what they get out of it when this happens.
Some banks are more strict but many are willing to give people loans, like mentioned, knowing they won't be able to pay them off. It is kind of a crappy thing to do if you ask me.
I think this was the case with the loan I took out. I had bad credit at the time and I was in between jobs but they still approved it. I think this was the one that took my score down a good 50+ points all by itself.
Personal loans are there to help people but it seems like in most cases, it ends up hurting them. You sign on for one in a moment of desperation in most cases and many people out there don't understand the fine print of what they are even signing on for. It is a shame really.
I made this mistake when I was younger. It's all too tempting to take a big credit card or loan and not think twice.
Only take out what you know you can afford to pay each month and think ahead for the entire term of the loan.