5 Tips to Help You Obtain a Personal Loan in South Africa – GuideNov 14, 2019
Personal loans are an excellent way for many people to finance their daily activities. From paying medical bills to purchasing a new car, personal loans give individuals the pool of money they need to complete their transactions. Yet, this doesn’t mean that the money comes for free. As with any available loan, it will have to be returned with interest.
That said, if you’re looking to apply for a personal loan, here are a few helpful tips to keep in mind:
1. Compare Different Offers
There are many personal loans available that have different requirements. If you’re looking for an unsecured loan, you may be required to have someone else sign the contract with you to help you pay back the loan in case you can’t. On the other hand, a secured loan won’t require a signing, but it does come with the risk that if you cannot pay back the loan, you will lose your property as collateral.
Loans can also be obtained in different places. You can find loans in banks, but they will come with stricter requirements, like a high credit score. If you’re having trouble with a low credit score, there are some lenders online that specialize in lending for cases such as yours.
2. Make Sure You Can Afford It
Although lenders will play their part in making sure that whoever they work with can pay back what they owe, you have to play your part in making sure you’re able to do so as well. That said, before you look for a loan, you’ll need to know how much you need.
Most lenders will charge a fee which will be deducted from the amount you borrow, so make sure that you borrow enough money to compensate for that. Then, figure out your monthly payments. Although it’ll be challenging to know how much you’ll be paying, personal loan calculators can help give a rough idea of just how much you will be expected to pay.
3. Find Out Your Credit Score
Most lenders will check your credit score before making their decision. While most loans will need you to have a favourable credit score, the better your credit rating is, the better your chances are at qualifying for offers with lower interest rates. Even if your credit score is low, you can still apply for certain loans. However, they may come with very high fees and interest rates, so pushing up your credit score is the preferable action to take.
4. Look for the Best Rates
The last thing you want to happen is to find another offer with a better interest rate only after you’ve already signed for one. To avoid that, make sure to check around for the offers with the best rates thoroughly. Also, if you’ve been using a specific bank for a very long time, you can ask them what you qualify for. Depending on how good your credit history is, they may be willing to overlook some of your little mishaps along the way and offer you great contracts as well.
5. Make Your Final Decision
After going through the previous tips, you now will need to apply for a lender. Share with them how much you want to borrow, review the terms and conditions, and provide any relevant information needed for the loan, such as name, address, and others alike. Don’t worry if you miss anything along the way, because you’ll be able to review everything before signing to the agreement. However, be sure to read the fine prints carefully. The last thing you want is finding out a hidden fee stated in the contract that you’ve missed.
Do thorough research and make sure that you’ve run through every possible option when it comes to loans. By doing so, you will enjoy the benefits of getting financed with minimal issues.
If you’re in South Africa and would like to take out a personal loan, feel free to contact Hoopla Loans today! We’re happy to help.