Your Loan Related Questions Answered Honestly & Directly by a Lender
As consumers in South Africa find their budgets are becoming increasingly squeezed, many might start to wonder whether a short-term loan could provide an instant boost to their cash-flow needs.
With South Africa suffering from a well-publicised financial literacy problem, it’s more important than ever to be as informed as possible about your credit options, so before you even think about applying for a short-term loan, you must have a thorough understanding of the potential implications of this type of borrowing.
Today we put some of the most commonly asked loan related questions to the quick loan provider Wonga South Africa to help educate and ensure people are making informed decisions about short-term credit with these honest answers straight from the horse’s mouth. You can read more of their honest answers about the quick loan industry here.
Q: Are quick loans safe to use?
A: Quick or short-term loans can give you quick access to cash that you might need to meet essential expenses such as a rental payment or a repair to a car. However, like any loan, they are not without their risks.
- Quick loans can be expensive so you should always shop around for the best rates, understand the total cost of the loan and make sure you can comfortably afford to make the repayments before you apply.
- Lenders have their own repayment windows, and while it might be tempting to choose the shortest repayment window to minimise your interest payments, a longer repayment term will make each repayment more affordable. if you are unable to make a repayment on time, you risk incurring additional late payment fees on top of your interest repayments.
- It can be very easy to access a short-term loan online, which is one of the benefits of this type of loan. However, lenders should always carry out an extensive check on your application, affordability and credit history. Without these barriers in place, the risks are far higher.
