How can I be a responsible borrower?
With all the options available to obtain credit nowadays, it is hard to resist the temptation of saying yes to debt. If you aren’t hassled by retail shops on a daily basis to increase your credit card limit, it is literally as easy as pie to apply for online loans. How can you make sure you go about this as a responsible borrower?
Find alternatives to borrowing
It is a very hard thing to do, but it is wise to find alternatives to taking out an online loan in the first place. Before you apply for instant credit, make sure you aren’t able to save on your monthly expenses. Try to cut down on your spending so you have money left to save for an item you really need.
Only borrow what you can afford
Before you apply for an instant cash loan, you should calculate your budget first. How much can you afford to repay the lender? Can you do it in one month or six? The latter can determine your choice of a credit provider, because not all micro lenders offer the same repayment periods. GetBucks, for example, offers short term loans up to 6 months dependant on what you qualify for.
Don’t take out too many loans
Borrowers often fall into the trap of obtaining debt at different places. It might not look like a problem to take out an instant cash loan from a lender here or have a little credit card debt there. Try to repay one loan at a time before you apply for another.
Only apply with a reputable lender
Be wary of who you approach for an instant cash loan. Not all lenders are responsible and registered with the National Credit Regulator. You might think that it is awesome if a lender doesn’t check your credit score or skips the affordability assessment before granting you a short term loan. But remember, such a lender will put you at risk of falling into bad debt and eventually ending up in very big financial trouble.
It remains your own responsibly to be responsible borrower!