Many people are in need of loans for various reasons, some credible others not so credible. Taking up a loan is a personal decision that could affect the borrower’s financial well being either positively or negatively. If the money is being borrowed to be invested in appreciating assets or a business venture, this could help improve the borrower’s future financial position. On the contrary, there are people who take up loans to fund their holidays, weddings, or other leisure activities that will not earn them any tangible profits. Most of them end up regretting because their financials become a mess after that. Whatever the reason for taking up a loan, there are factors that need to be considered prior.