Start with your credit record
Your record at the credit bureaus is the first thing a lender checks. Get your free report from each bureau, dispute anything that is wrong and bring any arrears up to date before you apply. A judgment that has been paid must be removed once the bureau receives proof of payment, so send that proof first.
Avoid applying to many lenders at once: each application leaves an enquiry on your record for a year, and a cluster of them can count against you.
Lower your existing debt
Lenders look at how much of your income already goes to debt repayments. Paying off or closing a store account or credit card you no longer need can make a larger difference to your rate than a small increase in salary. If the new loan is meant to replace expensive debt, say so: some lenders price consolidation loans differently.
Borrow less, for less long
A smaller amount and a shorter term lower the lender's risk and your total cost. If the instalment on the shorter term is too high, that is a sign to borrow less rather than to stretch the term. Our guide on the monthly repayment shows how much the term changes the total.
Compare binding quotes
A registered lender must give you a pre-agreement quotation showing the rate, every fee, the instalment and the total repayable, and the quoted terms stay binding for five business days. Ask two or three lenders for quotes on the same amount and term, and compare the total repayable. Check whether credit life insurance is included and whether you may take cover from another insurer, which is your right.
Your own bank may see your salary and account history and price you accordingly; it is worth asking it for a quote alongside the others. Our guide on how lenders decide explains the assessment in more detail.
Look at the extras, not only the rate
Credit life insurance can add noticeably to the monthly cost. Its premium is capped by regulation, and you may take the cover from an insurer of your choice rather than the lender's, as long as it meets the agreement's requirements. Ask for the quote with and without the lender's cover and compare.
Check, too, whether the initiation fee is paid upfront or added to the loan — added, it earns interest for the whole term — and whether the rate is fixed or moves with the repo rate. A slightly higher fixed rate can be the cheaper choice if rates are expected to rise during the term.
Where to start
Our page on personal loans in South Africa lists registered lenders that may consider you, with their amounts and terms, and shows the most a loan may cost by law — a useful line to hold every quote against.