Five ways to be credit smart


Good money management does not only mean building up savings to meet your goals, it’s also about being able to use credit responsibly to help you achieve your goals.

Emma Mer, CEO of FNB Personal Loans says the average South African adult can relate to a situation where they require access to money to solve for a specific need, and a Personal Loan is often the ideal product because of its structured repayment term and ease of accessibility.

“Whether it’s to cover a shortfall in your child’s education savings, to take care of medical and family emergencies or to top up savings for your special wedding day – we all know about significant life events where you need access to money,” Mer says. 

Mer says that Personal Loans play an important part in the life of South Africans; however she also reminds us that “every consumer has a duty to manage their Personal Loan responsibly in order to keep their finances and credit worthiness intact.” Borrowing for every day expenses or for luxury items that aren’t a necessity is not a wise decision. It’s better to save up for such items and to manage every day expenses carefully within a budget.

Mer provides the following useful tips to help you become “credit smart”:

  • Borrow from a trusted provider: It can be very enticing to have credit providers offering you deals, but be very selective about where you borrow money. It’s safer to borrow from a bank as they are governed by strict industry rules.
  •  Do not over extend yourself: This is where financial discipline becomes important. Avoid the temptation to borrow more than you require as this could have a negative impact on your disposable income and your credit record if you become unable to repay.
  • Choose a Personal Loan amount and repayment term that makes your instalment manageable: The term you choose to repay your Personal Loan is important as it directly impacts your monthly instalment Make sure you can afford your repayments. Should you be able to pay off your Personal Loan early, FNB will not charge you any penalties.
  • Pay on time: Paying your Personal Loan on time is important in order to keep a good credit record, which determines your ability to get credit in future.
  •  Pay by debit order: Paying via a debit order is one of the easiest, most reliable and cost effective ways to meet your repayment obligations.

“At FNB, we encourage our customers to first apply with us. Customers who bank with us typically do not require any documentation to complete their Personal Loan application, and can access a Personal Loan quickly and easily through our various channels,” says Mer.

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