Shopping for credit
Before shopping for credit you should ask the lender or credit providers for the following information:
- the interest rate(s) applicable;
- the amount of fees and charges payable;
- details of any commission.
Banks and other credit providers are required to give you a better idea of how much you're really paying for credit. A new rate, called a comparison rate, includes both the interest rate and the fees and charges, reduced to a single percentage figure.
You can use this information to compare certain credit products more easily.
Hints on choosing credit
- Shopping around can save you money;
- Don't automatically take the credit suggested by a sales person. It may not be the best deal;
- Check out the interest rates offered by different lenders such as banks, credit unions, building societies and other businesses;
- Compare comparison rates;
- Don't sign anything unless you are sure of the credit that is being offered. A credit contract is a legally enforceable document.
Read all the documents carefully and don't be pressured to sign there and then - there is no need to.