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What reason should I give when applying for a personal loan?

Sharon McDougall - Updated - 29th April 2024 - 2 minutes to read

When you apply for a personal loan, it’s important to be open with the lender and tell them exactly what the loan is for. In most cases this won’t affect the success of your application, and it protects you from problems further down the line.

Personal loans are taken out for many different reasons - from wedding expenses to paying for a special holiday – but if you’re not honest on the application you run the risk of the loan being called in at a later date.

What are the common reasons for taking out personal loans?

Consolidating existing debts, such as those on your credit cards and store cards, can be a good idea in many cases but it’s advisable to seek professional advice on this before applying.

Scotland Debt Solutions specialises in helping Scottish people to escape debt, and can let you know whether it’s the best option in your circumstances.

Are there any instances where the bank won’t lend money?

There are certain reasons for a personal loan application that won’t be accepted by a lender. These include, but are not limited to:

If you’re not completely truthful with the bank on your personal loan application, it can have serious consequences if they later discover that you’ve been dishonest. They’re likely to demand the outstanding amount in full, which could leave you at risk of serious financial difficulty if you can’t repay.

What are the benefits of taking out a personal loan?

A personal loan offers several benefits depending on your circumstances, and although you’re taking out more borrowing it can sometimes help you deal with a difficult financial situation by regulating repayment and helping you budget.

If you’re considering applying for a personal loan, our experts at Scotland Debt Solutions can help. We specialise in helping Scottish residents out of debt and can provide the reliable advice you need. Please contact one of our experts - we offer free same-day meetings at our network of offices around Scotland.

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Sharon McDougall


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