Before you go for a loan, be sure you know how much spare money you have each week to pay the loan off (See the ICAN online "Budget Planner"). This will help you to work out how much you can really afford to borrow. The last thing you want is to have a loan that you can't pay back and having your car repossessed or a bad credit record preventing you from getting another loan.
| Before you get that loan: |
| 1. Shop around for your loan. Interest rates can vary in different types of loans. Make sure you find the right loan for you! |
| 2. How much is the ‘interest’? Interest is the amount of money that the credit provider (banks, finance companies) charges you, to lend you the money. |
| 3. Is the interest fixed (ie. won't change over the course of the loan) or is it variable? |
| 4. Are there additional fees and charges? These may include establishment & application fees, legal fees, insurance. Understand what they are and when you have to pay them. |
| 5. Read and understand the contract before you sign. If you have questions, seek advice! |
| 6. Take all the time you need before signing up for a loan. |
| 7. The faster you pay back your loan, the less you will pay overall. |
| 8. What are the conditions of the loan? Do they suit you? For example, can you change how and where you make repayments? If you have spare money, can you pay the loan off early - without penalties? |
| 9. In most cases, the credit contract is separate from the contract to buy the goods. You can't cancel the credit contract if you decide you no longer want the goods. |
| 10. Keep all your paperwork in a safe place! |
