As beneficial as personal loans are, they are not without their drawbacks! Depending on the loan you select, you could be hit with high-interest rates that don’t benefit you and leave you paying more than if you used a credit card! You can also encounter late fees and penalties that can be costly if you send the repayment to the lender late.  These late payments can also impact your credit score. If you miss a payment, say if your paycheck is late, it can cause your credit score to drop! You might have a fluctuating credit score, preventing future lenders from lending you money. You must make your payments on time to prevent your credit score from being impacted.