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No, you don’t have to accept a loan offer just because you applied. After you’re approved for a loan, you have a chance to review the rates, terms and other conditions first. You won’t be on the hook for a loan until after you’ve signed your promissory note — otherwise known as your loan contract.
You won’t receive the funds and won’t be responsible for repaying the loan. However, there can be a few negative consequences:
Most lenders offer the option to prequalify before completing the full application. This lets you check your eligibility and get an estimate of the loan amount, rates and terms you might receive. And it’s typically based on a soft credit pull, meaning your score won’t take a hit.
You aren’t guaranteed to get the rates you prequalify for, but it can give you a risk-free idea of what your offer might be.
That depends on the lender. Some might expect an answer right away. Others might give you a window as long as a week, two weeks or even 30 days to decide if you want to take out the loan. After you receive an offer, the lender should let you know how long you have to accept it before it expires. If it doesn’t, reach out to customer service.
That also depends on the lender. Some personal loan providers give you a day or two after accepting a loan to cancel it. Others like Discover might give you as long as a month. But return periods are more common with student loans than personal loans.
If you no longer need the loan, pay it back as soon as possible — even if there is no return period. The longer you wait, the more you’ll have to pay in interest.
There might be potential negatives to rejecting a loan offer. But taking out a loan that’s not right for you can be expensive and ruin your credit. Here’s when you should say no:
Before you sign on to any personal loan, consider the following factors:
Lenders allow you to reject your personal loan offer if you don’t like the rates and terms you qualify for. If you face any negative consequences, those are often outweighed by the potential fallout of signing on to a loan that’s not the right fit for you. You can read our guide to personal loans to find out more about how they work.
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