One way the lender can add extra costs to your loan is by adding “credit insurance”. Often these are charges for benefits and insurance you didn’t ask for. The lender may insist that these come with the loan or that the loan would have to be re-written if you refuse them and may not be approved. Usually, the lender hopes you do not notice these extra charges. If you agree to pay for the insurance, you may be paying a lot more for your loan than you bargained for.

Don’t agree to a loan that includes credit insurance or extra products you don’t want. If credit insurance is a condition of the loan, shop around for the best rates.