Why it's important to tell the truth in your application
When you apply loans companies want to know one key thing: can you afford the repayments? It's tempting to tell a few porkies to make your application more attractive, but it's a very bad idea that could land you in a financial mess.
When you apply loans companies carry out various checks, but the main question they want to answer is: can you afford the repayments? Lenders have to act responsibly, which means that if they think a loan is likely to overstretch your finances then they won't let you borrow money.
It's tempting to omit a few details or exaggerate your income on your application, but it's a bad idea – and not just because fraud is a crime that could land you in prison. When you apply loans companies often check your details with your bank to check you earn and spend what you say you do, and a quick credit check – carried out as standard by almost every lender – will uncover any CCJs or other black marks on your credit rating. More importantly, even if you don't get found out – which is unlikely – if you really can't afford the repayments then it's just a matter of time before you dig yourself into a deep financial hole.
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