Warning – Before you apply for a loan, make sure you are clear about any potential upfront or ongoing costs you may face as a result of taking out a loan, and have factored these into your budget. Be aware that your credit score may be affected every time you make a formal loan application of any kind, as all new loan applications and rejections show up on your credit history. If you are rejected for a loan, this will negatively impact your credit score and appear on your credit history for up to 12 months. It's recommended that you do your research and/or talk to a financial consultant before deciding whether a loan is the right option for you.