When you’re looking to borrow money there are a number of important factors to consider. For instance, a good place to start would be to make sure what kind of loan you need. Not only will this help make sure that you get the right loan solution for your needs, but it will also help you avoid wasting any time.
The financial industry is continually changing and more lenders have entered into the industry. This means that borrowers now have to be more cautious about the lenders they approach for access to finance. Now, more than ever, there are numerous pitfalls to watch out for before you borrow money.
For instance, not all lenders are responsible and registered with the National Credit Regulator (NCR) and they aren’t all compliant with rules set by the National Credit Act. So it’s important to make sure that as a borrower you spend enough time shopping around to make comparisons. Don’t borrow from loan sharks, but only from registered credit providers.
Legitimate short term lenders don’t require any fees to be paid upfront, but it’s important to be vigilant and keep in mind that fees and charges may be hidden by unscrupulous lenders.
One of the most common pitfalls to watch out for when you borrow money is not knowing what type of loan you need. You need to make sure that you know the difference between secured and unsecured loans. If you opt for a secured loan, you need to keep in mind that if you can’t keep up with repayments, you could lose your home.
As a borrower, having access to cash can be tempting. Be careful about borrowing more money to pay off existing debts.
You should also check the terms of a payment protection insurance to see that it meets your needs.
Some lenders offer “Take-a-break” facilities. While these can be highly attractive, keep in mind that you may be charged extra interest once you start making payments again after a payment holiday.
Ensure that you do the necessary research before you borrow money.