The amount of financial products available in South Africa is nothing less than astronomical! You’ve undoubtedly noticed this in you search for the perfect loan and doing various loan comparisons. However much you need to borrow, it makes sense to take a few simple steps to ensure you take out the right loan for your individual circumstances.
Read on for a few final steps after your loan comparisons before the steps of applying:
1. Review your need.
“One of the first questions new clients ask is; Which loan is best? The better question is; What loan is best for me?”
Following this thought, you need to ask yourself truthfully, is a loan the best way to cover that expense or big purchase? There are lots of different ways to borrow money, and asking yourself whether a loan is the best option, is key. This should become clear through doing extensive loan comparisons.
2 – Check your credit profile.
Your credit score has a significant impact on both the interest rate you’ll pay on your loan, and the amount you will be able to borrow. Rejected credit applications have an unfavourable effect on your score, thus it makes sense to check your score before applying for the loan to see if you’re likely to be approved or not. As a South African, you’re eligible for one free credit check per year. You’re welcome to read here on the 2 Types of Credit Checks for further info to assist you. If you’re confident in your credit history, you can search for trusted credit bureaus here.
3 – Check your repayments.
After doing the necessary loan comparisons and before applying for a loan of any kind, it is important to ask yourself if you’ll be able to afford the repayments you’re signing up for. You risk getting penalties if you can’t make payment and damaging your credit profile for future endeavours. If you use collateral as security, you can also put these assets at risk by falling behind on your payments. Fortunately, Finckeck’s loan comparison page can give you clarity on the overall amount you’ll need to pay.
If you’re on top of these steps and confident in your financial state, ponder this thought:
A bank is a place that will lend you money if you can prove that you don’t need it!