Don't worry about little white lies, right? Not if they are on your application for a loan. Lies on a loan application are not harmless, and they can actually hurt your chances of getting credit. Different people lie on their loan applications for different reasons. Some people want to hide a bad credit history, while others don't want to give out personal information. Still, lying about a loan is not a good thing to do, no matter why. It can hurt you and make it harder for you to get a loan. In Britain, loan lying is a pretty common problem.
Who is the Loan Liars?
People from all walks of life lie about loans. Two-thirds of the people who lie on their loan applications for secured loans, insurance, and credit cards are men between the ages of 26 and 40. About 64% of these men lie to hide the fact that they have bad credit. On the other hand, 77% of women who apply for loans lie to hide a bad credit history. Only 17% of these people use a fake name. Ten percent of the people who lie on loan applications say they used fake documents to back up their lies. Also, 9% of men and 7% of women lie about where they work or how much they make.
Why you shouldn't lie about getting a loan
The most important reason NOT to lie about a loan is, of course, that it is against the law. Some people, on the other hand, don't care at all about the law. That's fine, though, because there are other reasons that are just as good. Think about why you want a loan in the first place: to get credit or to get more credit. You could be making things worse for yourself. What would you do if you did get that credit or higher limit? How will you pay your bills, and what do you stand to lose if you don't? You could lose your home if you lied to get a mortgage. Think about it and think about what could happen before you tell that story.
How do loan defaulters affect the total amount of debt?
Loan liars cause a lot of overall debt, which means loans that aren't paid back. Interest rates go up for everyone when everyone has a lot of debt. If you add to the overall debt, you are part of the problem and part of the reason why interest rates go up. Do you want to be part of the problem, or do you want to help fix it? It depends on you.
How do people catch you?
More and more businesses are catching people who lie to get a loan before they can do any real damage. What are they doing? Lenders are working together and sharing information, which makes it much easier to catch people who lie about getting loans. They use services that share loan information to catch people who lie on their loan applications before they are approved.
In the end, it's not a good idea to lie on a loan application. Even if you get away with it, it's likely you won't be able to pay for it. You could get in trouble with the law if you don't get away with it. There is no way to win. Just tell the truth to be safe.
