personal loan first time borrower

Personal Loans Tips for First Time Borrowers

Posted by on

There are various tools for managing your finances and personal loans are among the most useful. They are fairly easy to take out as long as you earn income and do not require collateral. Still, you would want to get the best possible loan given your needs and circumstances. Use some advice to help you with this.

Get your paperwork in order and ensure that you do not have any unpaid bills

Most lenders in South Africa including the major banks like FNB, Nedbank and Capitec Bank would like to see that you are a reliable payee and will look into your payment record.

You will certainly make a good impression if your paperwork is flawless. This will also speed up the processing of your application.

Consider borrowing a fairly small sum of money first. This will bring several benefits. Firstly, you will have higher chances of approval. Moreover, it will be easier for you to repay your debt on time and in full. This will allow you to borrow more money next time and at a lower interest too.

Pay great attention to the term of the loan. With a shorter period, you will have higher monthly payment but the total cost of borrowing will be lower. It all depends on your income and spending and on your financial plan for the near future.

Finally, it is crucial to use comparison shopping. Compare personal loans from both large and small lenders. Consider even online lenders outside of your province and city no matter whether you life in Johannesburg, Durban, Cape Town, Pretoria or any other place.