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.

From 1 July 2003, 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.

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