A checklist before you borrow
Most expensive borrowing decisions are made quickly, under pressure, on incomplete information. These nine questions take about five minutes and catch the mistakes that cost the most — starting with whether you need to borrow at all.
Takes
About five minutes
Catches
The costly mistakes
Question 1
Is there a cheaper source?
Question 9
What if something changes?
What you need to know
Answer these in order, and stop at the first one you cannot answer well. That is where the problem is.
Before you take any loan
- Is there a cheaper source? An employer advance, an existing policy, a payment arrangement, or a family arrangement in writing.
- Do I know the total cost of credit, not just the instalment?
- Have I taken the shortest term whose instalment I can genuinely meet?
- Is the lender registered — NCRCP number, checked against the register, held by the entity in the terms?
- Have I read the pre-agreement quote in full, including the credit life insurance line?
- Does the instalment still fit after my existing debit orders, not before?
- Am I borrowing to repay other borrowing? If yes, stop and speak to a debt counsellor.
- Have I been asked for any fee before payout? If yes, it is a scam — walk away.
- What happens if my income drops next month? If there is no answer, the loan is too large.
Check these three things before you sign — here or anywhere
- The lender’s NCRCP number is published on its own site, and it checks out in the National Credit Regulator’s register.
- The pre-agreement quote breaks out the total cost of credit: interest, initiation fee, service fee and VAT — as one figure you can compare.
- Nobody asks you for an upfront “release fee”. A registered credit provider never charges you before it pays out.
Related
Sources and last checked
- National Credit Act 34 of 2005 and its regulations — Government, as at 10 August 2026.
- National Credit Regulator — register of credit providers — Regulator, as at 10 August 2026.
Page last checked 10 August 2026. Statutory caps and lender terms change — confirm anything you intend to rely on with the provider or the National Credit Regulator. Found something wrong? Tell us and we will correct it.