In fact, the issue of credit requires great attention as well as the necessary plans and strategies to keep you in debt.
If you are planning to borrow, then be aware of five key factors to consider before applying for a loan.
1. Specify your financial capabilities
In order to find and use the loan properly, it is important to understand your financial capabilities. If your financial capacity is one million shillings, if you borrow a 1 billion loan you will not be able to get it back. Make sure you evaluate your income and your ability to use money to avoid falling into debt.
2. Prepare a plan of use and restoration
Many people fail to get a loan or return the loan due to lack of good use of the loan and refund.
Make sure before borrowing you create a good and practical plan and how you will use it and restore your loan. Do not copy and make, but be my own, and draw.
3. Know about interest
Banks are an enterprise to make profits; There are many bank makes a business especially through credit. It is important to be aware of the amount of interest you will be charged on the loan you have borrowed. Many people have come into serious problems after they found themselves borrowing very expensive loans. Make sure you know what interest you will be charged and assess if you can afford it.
4. Know the term of the loan
As long as the loan is long, the rate of pay for the month becomes less. So it is very important to check the time to restore the loan to see if you can afford to restore the loan within the given time.
5. Know the other cost of the loan
Credit is often accompanied by other costs such as the cost of processing the loan, the cost of early repayment, early withdrawal costs, etc. It is good to know these costs so that you can see if you can succeed. Make sure you have a credit card reader and understand it before you are approved to receive a loan to avoid any future problems.