When you don’t have the funds you need to buy something you want or need upfront, it’s nice to be able to borrow the funds from elsewhere. Loans have long been helping individuals to do everything from getting out of jams to pursue their wildest dreams. Unfortunately, as convenient as loans can be, not everyone uses them in the most positive way. As a result, it ruins their credit and makes life a bit more complicated.

Here’s a look at a few of those things you should never do with a loan.

Take Out More Than You Can Afford

Whether you’re applying for a mortgage or just in need of a small check advance, the last thing you want to do is borrow more than you can afford. Even if you are pre-approved for a higher amount than you asked for, you should only agree to accept what you can repay. Taking more than you need could create a problem when it comes time to repay. Failing to pay increases the fees and ruins your credit.

Skip Payments

Everyone falls on hard times and there are things that you can’t always control, however, when you’ve taken out a loan you’re obligated to repay it in a timely fashion. Skipping a payment or two might not seem like much of a big deal because you’ve already used the funds, but it can hurt in the long run.

Skipped payments get logged on your credit report. If the pattern continues, the lender may place a lien on your assets, file a suit, garnish your wages, and a host of other things. It’s best to make payments as you agreed and if something does come up, talk with your lender. They understand that life happens and will offer you a few options to try and get you back on track.

Give it to Someone

Let’s say someone comes to you in need of money. You don’t have it to give, however, you do have reasonable credit. So, you decide that you’re going to apply for a loan, receive the funds, and then give the funds to your friend or relative. You explain how you’re going to acquire the money and even explain that they must make timely payments or it will ruin your credit. Time for the first payment arrives and they don’t make a payment.

Believe it or not, though you were just trying to help someone out of a jam, borrowing on their behalf isn’t such a good idea. You shouldn’t even be a co-signer if you haven’t weighed the pros and cons as it will only damage your reputation and credit.

It’s great that there are lenders out there that would be willing to extend cash or a line of credit to you to acquire things you want and need in life. However, borrowing money is not something that should be taken lightly. Once you sign on that dotted line it is your responsibility to do the right thing or face the consequences. To ensure that you don’t end up suffering, be sure that you never do any of the things listed above.