Jasz
VIP Contributor
If you’re borrowing money from a bank, then no. A bank will not require a commitment letter. This is because banks make loans based on your credit score and ability to repay the loan. They know that if they lend you money without requiring collateral or a co-signer, and you default on your payments, then they can get their money back by repossessing your house or car.
If you’re borrowing money from friends or family members, then yes. If they are lending you money, then they have every right to make sure they get their money back. They don’t want to lend someone $10,000 only to find out that person left town with no intention of paying them back! Asking for a commitment letter from people close to you shows them that you are serious about paying them back and that this isn’t just another scam where you try to borrow money and never pay it back.
If you’re borrowing money from friends or family members, then yes. If they are lending you money, then they have every right to make sure they get their money back. They don’t want to lend someone $10,000 only to find out that person left town with no intention of paying them back! Asking for a commitment letter from people close to you shows them that you are serious about paying them back and that this isn’t just another scam where you try to borrow money and never pay it back.