Digitally, you can borrow a loan from personal loan apps. The process is faster and has a user-friendly interface. But we make mistakes in a rush to get the instant loan.
In the rush, many borrowers skip key steps and end up paying more than they expected—or worse, getting trapped in a cycle of debt.
Here are 5 common mistakes to avoid when using a loan app, and how to make smarter financial moves instead.
1. Not Reading the Fine Print
Loan apps are designed to move fast. However, you shouldn’t ignore the terms and conditions. Many borrowers tap “Accept” without understanding the interest rate, late fees, or repayment schedule.
What to do:
Take five minutes to read the loan agreement. Look for the APR (not just the monthly interest), any hidden fees, and the total cost of the loan. If something looks vague or unclear, don’t borrow from that app.
2. Borrowing More Than You Need
It’s tempting to borrow a little extra “just in case.” But remember, every extra loan amount comes with added interest and more pressure to repay on time.
What to do:
Only borrow what you need. Apps may pre-approve you for a higher amount, but that doesn’t mean it’s wise to take it all. Keep your loan tight and focused.
3. Ignoring Your Credit Impact
Some loan apps don’t affect your credit, but others do—especially if you miss payments. Many borrowers see app-based loans as a way to avoid traditional financial systems.
What to do:
Check whether the app reports to credit bureaus. If it does, missed payments can hurt your score. If you’re using the loan to build credit, look for apps that report positive history, too.
Also Read: 10 Best Loan Apps for Low Credit Scores
4. Falling for Flashy Promises
“Instant approval.” “Zero paperwork.” “Cash in 5 minutes.” These claims grab attention, but they can also distract from high fees.
What to do:
Trust, but verify. Look at user reviews, check app store ratings, and research the lender’s reputation. If the offer looks too good to be true, it probably is.
5. Do Not Have a Repayment Plan
Getting the loan is easy. But many borrowers forget to pay EMI on time. Without a clear plan, it’s easy to miss payments or fall behind.
What to do:
Before accepting any loan, check out your repayment schedule. Question yourself: Can you comfortably afford the monthly payments? Will you still have enough for essentials like rent, food, and utilities?
Also Read: Top 5 Instant Loan Apps in India
The Bottom Line
A loan app should work for you, not trap you. With 24hrLoan, we make the process fast and transparent. Our mission is simple: provide short-term loans you can trust, with no hidden strings. But whether you borrow through us or elsewhere, remember—quick cash shouldn’t lead to long-term regret.