SMART MONEY MOVES : 10 TIPS FOR FINDING A PERSONAL LOAN PROVIDER IS A PERSONAL LOAN A WISE IDEA ? JUSTMONEY INVESTIGATES , AND OFFERS TIPS FOR SELECTING THE BEST LOAN PROVIDER FOR YOUR NEEDS . TAKING OUT A PERSONAL LOAN IS A SIGNIFICANT FINANCIAL COMMITMENT THAT REQUIRES CAREFUL CONSIDERATION . IT ' S IMPORTANT TO ASSESS YOUR FINANCIAL SITUATION AND CONSIDER ALTERNATIVES BEFORE YOU APPLY , ADVISES SARAH NICHOLSON , OPERATIONS MANAGER OF JUSTMONEY . CO . ZA , A PLATFORM THAT HELPS SOUTH AFRICANS MAKE GOOD MONEY CHOICES . IF YOU DECIDE TO TAKE ON DEBT , DO YOUR HOMEWORK AND INVESTIGATE LOAN OPTIONS FROM YOUR BANK OR A REPUTABLE FINANCIAL SERVICES PROVIDER , NICHOLSON RECOMMENDS . A LOAN IS PAID BACK ACCORDING TO TERMS AGREED WITH THE LENDER , USUALLY THROUGH MONTHLY INSTALMENTS OVER A SPECIFIC PERIOD . MAKING REPAYMENTS CAN BE TOUGH , ESPECIALLY IF THE AMOUNT IS SUBSTANTIAL RELATIVE TO YOUR INCOME , OR IF YOU EXPERIENCE A FINANCIAL SETBACK , SUCH AS UNEXPECTED MEDICAL EXPENSES . FREEING UP FUNDS ALTERNATIVES TO A LOAN INCLUDE TAPPING INTO EMERGENCY SAVINGS OR USING OTHER LIQUID ASSETS . ASKING FAMILY MEMBERS FOR FINANCIAL ASSISTANCE CAN ALSO PROVIDE TEMPORARY RELIEF . IF YOU DON ’ T NEED THE FUNDS IMMEDIATELY , STRICT BUDGETING CAN HELP YOU TO ACCRUE SAVINGS , WHILE A SIDE HUSTLE CAN HELP TO INCREASE YOUR INCOME STREAM . “ THESE ALTERNATIVES EMPOWER YOU TO MAINTAIN FINANCIAL STABILITY WHILE AVOIDING UNNECESSARY DEBT ,” SAYS NICHOLSON . THERE ARE , HOWEVER , INSTANCES WHEN TAKING OUT A PERSONAL LOAN IS PRUDENT . FOR EXAMPLE , USING A LOAN TO CONSOLIDATE HIGHER-INTEREST DEBTS INTO A SINGLE , LOWER-INTEREST PAYMENT ; FINANCING HOME IMPROVEMENTS TO ADD VALUE TO YOUR PROPERTY ; OR TAKING A STUDENT LOAN TO BOOST YOUR INCOME IN THE LONGER TERM , ARE ALL GOOD REASONS TO BORROW .
• READ A JUSTMONEY ARTICLE ON HOW TO ACCESS CREDIT FOR THE FIRST TIME . EVALUATING LOAN OFFERS MANY BANKING APPS OFFER PERSONAL LOANS . PREQUALIFYING ONLINE WILL FOCUS YOUR SEARCH AND SAVE TIME ; HOWEVER , NICHOLSON CAUTIONS , MULTIPLE APPLICATIONS CAN MAKE YOU SEEM DESPERATE . IF CREDIT BUREAUS RECEIVE SEVERAL REQUESTS TO VIEW YOUR CREDIT REPORT , THIS CAN HARM YOUR CREDIT SCORE .
• READ A JUSTMONEY ARTICLE ON HOW LENDERS VIEW YOUR CREDIT SCORE , AND HOW YOU CAN IMPROVE IT . BEFORE YOU COMMIT , COMPARE LOAN OFFERS BASED ON INTEREST RATES , MONTHLY PAYMENTS , REPAYMENT PERIODS , ADMINISTRATION FEES , AND PENALTIES . CONSIDER A SHORTER LOAN TERM TO MINIMISE TOTAL INTEREST PAYABLE , IF YOU CAN AFFORD HIGHER MONTHLY INSTALMENTS . ENSURE YOU CAN MAKE EARLY REPAYMENTS WITHOUT PENALTIES .
• READ A JUSTMONEY ARTICLE ON WHETHER IT ’ S WORTH THE PENALTY TO SETTLE YOUR PERSONAL LOAN EARLY . ASK THE FOLLOWING TEN QUESTIONS TO SELECT YOUR BEST CREDIT PROVIDER : 1 . WHAT IS THE INTEREST RATE FOR THE LOAN ? IS IT FIXED OR VARIABLE ? 2 . WHAT ARE THE ASSOCIATED FEES ?