Money Matters: How to shop for credit
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.
- Is applying for credit the only way I can get what I need?
- Will the loan uplift me financially, getting me closer to achieving my long-term goals?
- As the first step to knowing my financial health, do I know what my credit score is?
- Looking at my current budget, will I be able to repay the instalments on time every time for the duration of the loan term?
- Can I afford to repay the loan and still have money left over for emergencies?
- Is my income or employment stable?
- Do I know where to get help if I’m no longer able to make my payments?
- Do I know the exact amount I need before applying for the loan?
- Do I understand the full amount I will need to pay back when I add all the fees and interest?
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!
Money Matters is brought to you by Capitec Bank
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