24/09/2026
5 Loan Myths You Probably Still Believe 👀
Some loan myths sound so believable that we never question them. Here are 5 that could actually change how you borrow:
1️⃣ Myth: Checking your own credit score hurts your score.
Fact: Checking your own credit report is generally a soft inquiry and doesn't hurt your credit score.
2️⃣ Myth: Paying your EMI early always improves your credit score.
Fact: Credit scores primarily reflect your repayment history and credit behaviour—not simply how early you pay an individual EMI.
3️⃣ Myth: You should always close an old loan as quickly as possible.
Fact: Closing a loan can reduce your active debt, but the effect on your credit profile depends on your overall credit history and mix.
4️⃣ Myth: Pre-approved loans are guaranteed loans.
Fact: “Pre-approved” doesn't necessarily mean final approval. The lender may still verify your documents, income and eligibility before disbursal.
5️⃣ Myth: The EMI shown in an online calculator is exactly what you'll pay.
Fact: Calculators usually show the EMI based on the inputs provided. Processing fees, insurance and other applicable charges can affect the actual borrowing cost.
The real loan hack?
Don't just ask, “How much can I borrow?”
Ask, “What will this loan actually cost me?”
Save this before your next loan conversation.
Ace Consultancy | Borrow Smarter.
Ace Consultancy, Loan Myths, Loan Facts, Loan Tips, Financial Awareness, Persona lFinance, Smart Borrowing
