Getting a Credit Loan
Credit involves some form of deferred payment. When an individual seeks credit they may qualify for a loan from a lender. The resources for the loan may be financial or may consist of goods or services. The lender provides the resources, which the borrower is expected to repay, over a specified period of time, with added interest.
Common loan types include:
- Mortgage loans
- Car loans
- Credit cards
- Payday loans
Loans may be granted to individuals or to businesses. Some lending institutions are willing to offer personalised credit plans. This is because different individuals have varying circumstances and needs.
The loan may be for a specific one-time amount or it can be available as open-ended credit.
Getting a credit loan requires you to consider a number of factors, including how much money you may need, the terms you are offered, your individual affordability and what you will be using the loan for.
Getting a credit loan often means that you need to fulfil certain criteria, which may include:
- Being between the ages of 18 and 65 years (this varies from lender to lender).
- Having a valid South African identity document
- Being able to provide proof of employment
Affordability is the most important factor. If you are considering applying for a loan you should ensure that you can afford to repay it comfortably without too much strain on your finances. It’s important to be realistic about how much you really need as well as how much you can really afford to repay.
If you need to get credit for your business, you may also have to fulfil specific criteria that are outlined by lenders.
Credit cards are types of loans. Individuals with credit cards essentially use funds that are owed to their bank or lender and are responsible for added interest if they don’t pay on time every month.
