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Is it smart to lie in your loan application?
By Joanne Clive
It is in the very nature of human being to show our smart. They do not shrink back from telling lies if it exhibits their smartness. However, all people do not lie to present themselves tastefully. For some people lying becomes a necessity.
'White lies' often save them from embarrassment or hurting others. On other occasions it helps them keep their privacy intact. Sometimes it also smoothens the way of availing something, which otherwise becomes difficult to come by.
It is the last reason that makes many people lie in their loan application. Those who take unsecured loans tend to lie the most. Research reveals that almost one out of each third borrower admits that they lied in their loan application. If you keep the morality issue out of question then lying in the loan application is not bad unless you are caught. But what if your lie is exposed! Will it disqualify you or affect the loan process? Let us throw light on the issue.
Lending industry is governed by some laws. There are laws that dictate both the lender and the borrower to be honest in their dealings. The credit agreement should clearly show repayment terms. In the same manner, the borrower also should provide the lender with true statements. Lying in loan application is illegal. If a borrower is found guilty of lying in his loan application before approval, the lender can reject him forthright. If his lie is exposed later then he will become subject to some penalties.
Not only that, once you are declared of lying in the loan application, you may lose your credibility as a borrower. It will hamper your further transaction. Borrowers need to be even more careful when opting for unsecured loans as there is no collateral involved. It can also affect your credit score and make you more vulnerable. Lying in unsecured loans application is not recommended even if you are not caught. Lying may bring you the loan for which you are not qualified. You may end up in unmanageable debt and face default. So, be savvy but don't try to act too smart by lying in your loan application.
About the Author
The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in business administration and is currently assisting Loans-bazaar as a finance specialist.
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