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Many loan officers get paid on commission, so it's in their interest to have you take out more money than you actually need. It is, of course, not ethical and may even be illegal for a loan officer to try to "up sell" you to a higher loan amount. If you are taking out a personal loan, it's because you are already cash strapped. Don't borrow any more money than you absolutely need to. A loan officer may prod you to take out more by telling you to stash it until you need it. Common sense dictates your monthly payment will be higher the more you take out. Instead of borrowing more money, stash the difference you'd pay for the larger loan in a savings account each payday. If you can set up an automatic withdrawal from your paycheck so it goes straight into a savings account, you'll be in a much better position.