Top 8 mistakes 68% of US borrowers make — lenders would never dare to tell you about

Use this as a quick guide before you borrow. Learn what lenders don’t want you to know and how to keep your money safe.

1) Staring at the “rate,” ignoring the APR

The mistake: Comparing loans by the interest rate only.

Why it’s costly: APR includes the true price of a loan (interest plus certain fees). A lower “rate” can still be more expensive once fees are counted.

Fix: Always compare APR vs. APR across multiple lenders.

2) Paying origination and hidden fees without doing the math

The mistake: Accepting “processing,” “underwriting,” or “origination” fees as inevitable.

Why it’s costly: Some lenders deduct fees from the funds you receive—but you still pay interest on the full amount.

Fix: Prefer no‑fee lenders when you can. If there is a fee, include it in your total‑cost comparison.

3) Missing the fine print on prepayment penalties

The mistake: Planning to pay off early… only to be charged for it.

Why it’s costly: Prepayment penalties can wipe out the savings of paying ahead.

Fix: Search your agreement for “prepayment” or “early payoff.” Get no prepayment penalty in writing.

4) Not checking your credit or using soft‑pull prequalification

The mistake: Applying blind and letting hard pulls stack up.

Why it’s costly: You may accept worse terms than you deserve—or get denied—because you didn’t prep.

Fix: Check your credit, fix errors, and use soft‑pull prequalification to compare offers safely.

5) Borrowing more and longer than you need

The mistake: Picking a longer term to shrink the monthly payment—and over‑borrowing “just in case.”

Why it’s costly: Longer terms reduce payment size but increase total interest paid.

Fix: Borrow only what you need and choose the shortest affordable term.

6) Falling for advance‑fee and “guaranteed approval” scams

The mistake: Paying any upfront fee for a “guaranteed” loan or responding to unsolicited “you’re approved” messages.

Why it’s costly: It’s a classic scam—pay first, money never arrives.

Fix: Never pay for a promise. Verify the lender’s registration with your state.

7) Ignoring payment discipline (late fees, no autopay)

The mistake: Missing due dates and racking up late charges.

Why it’s costly: Late fees add up; some lenders offer autopay APR discounts.

Fix: Turn on autopay and set reminders. If cash is tight, contact the lender before the due date.

8) Not shopping around

The mistake: Taking the first offer or sticking with your current bank out of habit.

Why it’s costly: Shopping multiple lenders usually yields better total cost (APR + fees + term).

Fix: Compare at least 3–5 lenders side‑by‑side before you decide.

Quick Checklist ✅

• Compare APRs, not just rates.
• Watch for origination and junk fees.
• Confirm “no prepayment penalty.”
• Check your credit first; use soft-pull prequal.
• Borrow only what you need.
• Avoid any lender asking for upfront fees.
• Enable autopay to avoid late fees.
• Shop at least 3–5 lenders before you choose.