Having to borrow money is a scary thought for anyone. Nobody likes to admit they need the help or to be in debt to someone else. But, often times, we are left with no choice. Maybe your daughter is getting married and the price tag of her wedding is near the $30,000 mark. Or, maybe you couldn’t get a secured loan and you need to consolidate your debt. Whatever the reason, before you submit your application, there are a number of things you need to keep in mind. First of all, before committing yourself, you need to carefully consider what you are and are not willing to pay interest for. Your daughter’s wedding may be worth it, but what about that trip your husband wants to make to the Caribbean? Is that worth getting into debt for? Remember that personal loans will have higher interest rates of often over ten percent, which is not tax deductible. If you decide that you are sure you need to borrow the money, and your credit card alone cannot handle the burden then begin a search for the best rate out there. Often times, credit unions and smaller, community banks will be able to offer you lower interest rates. Or, perhaps you can score some leniency with your credit rating if you are a regular customer at one of the bigger banks. When it comes to applying for personal finance loans, remember, however, that honesty really is the best policy. If you don’t let the bank know the real reason for your loan, you might be missing out one that better meets your needs. Remember, however, that submitting applications to multiple lending institutions can in fact hurt you. Instead of getting the lowest rate, you could in fact be lowering your credit score. Approach them one at a time, and take each application seriously. Once you think you’ve found the right place to secure your loan from, make sure you have read all of the fine print. Do you understand exactly what its terms are and how long you’ll have to pay it back? What is the minimum down payment and what will you be required to pay each month? Are there any additional fees? Will you be penalized for paying it off early? Keep in mind that the approval process for reviewing your application could take some time, especially with the larger banking institutions, so be sure to start well in advance of when you anticipate needing the money. Speed up the process by having all the necessary documentation on hand should it be required. Everything from your debts and assets to your employment history could be asked for. Personal finance loans are not to be taken lightly. They mean you are taking your financial credit and security out of your own hands and putting them into those of someone else. Be sure it’s what you need and proceed with caution. The damage that will come from not meeting its terms could far outweigh the benefits you gained from using the money.