Disadvantages of Personal Loans
As good as it sounds, personal loans have its own disadvantages such as:
- Some personal loans have higher interest rates because since it doesn't require collateral and are unsecured, the risk of not paying the lender back is high; and
- It can affect your credit score, either short-term or long-term negative effects. By adding debt to your financial profile, personal loans can and is going to affect your credit score.
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