Understanding how much credit costs you is an important step in being financially responsible.
As we learned in Understanding Credit it costs money to get money. Now we are going to break down what we mean by these costs, so that you know exactly what it is that you are paying for – on top of paying back the original amount you borrowed.
Here is a breakdown of charges you may see on documents sent to you by a credit provider:
These may seem like many things and difficult to keep track of, but the National Credit Act protects you, the consumer, by regulating the maximum cost that a credit provider may charge for the above categories.
It is very important to understand these fees and request a pre-agreement quote that will show all the charges the credit provider expects you to pay. Once you have this information, you can see if you can afford to take out the loan you are applying for.
Using Compuscan’s Free My Credit Check facility, you have access to your credit score and profile to confidently be able to make the right lending decision for your pocket. You’ll also be able to see your total amount of credit on your name as well as your payment history and current instalments.