Money Matters: How to shop for credit

Mashudu Malema | 20 March 2017

When shopping for credit, you should be careful and not rush into a decision that could have a big impact on your financial health. That is why you should ensure that the type of credit you accept suits your needs and pocket.

So we’ve complied a checklist of questions you should answer before you intentionally start shopping for credit.

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Answer these questions before shopping for credit.
  1. Is applying for credit the only way I can get what I need?
  2. Will the loan uplift me financially, getting me closer to achieving my long-term goals?
  3. As the first step to knowing my financial health, do I know what my credit score is?
  4. Looking at my current budget, will I be able to repay the instalments on time every time for the duration of the loan term?
  5. Can I afford to repay the loan and still have money left over for emergencies?
  6. Is my income or employment stable?
  7. Do I know where to get help if I’m no longer able to make my payments?
  8. Do I know the exact amount I need before applying for the loan?
  9. Do I understand the full amount I will need to pay back when I add all the fees and interest?

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If you answered ‘no’ to any of these questions, you might need to rethink your decision to get credit. The last thing you need is to find yourself in a world of debt that you’ll struggle to escape.

Stay woke fam!

 

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