Pre-Approved Personal Loans: Convenience or Costly Temptation?

• Pre-approved personal loans are offers from your bank based on your financial history and credit score, indicating you qualify for a loan up to a certain amount.
• These loans offer speed and convenience, often disbursed within hours, making them suitable for urgent financial needs like medical expenses or sudden repairs.
• Benefits include faster processing and a lower chance of rejection due to prior assessment by the bank.
• Drawbacks involve the temptation to borrow unnecessarily, potentially higher interest rates compared to secured loans, and the risk of skipping comparison shopping for better rates.
• Before accepting, evaluate if you genuinely need the funds, understand all terms including interest rates, processing fees, and repayment schedules, and ensure it fits your budget.