When you have an emergency bill to settle and are down bad on money, an instant loan can be your go-to quick fix. No paperwork, no collateral—just apply and receive in minutes. But, as with anything that sounds too good to be true, there are a few strings attached and some knots you definitely want to avoid tying yourself into.
So, before you click “Apply Now” on that shiny loan ad, let’s talk about 4 dos and don’ts of taking an instant loan that can help you borrow smart and stress-free.
Do: Compare Before You Commit
Think of it like online dating. You wouldn’t (well, shouldn’t) marry the first person who says “Hi,” right? The same goes for instant loans.
Look out for:
Interest rates
Processing fees
Repayment terms
Hidden charges (the fine print is your friend)
Don’t: Borrow More Than You Need
It’s tempting to add a little extra “just in case,” but remember, every naira borrowed is a naira plus interest repaid. Borrowing for that spontaneous weekend getaway? That’s a no from us. Stick to essentials or emergencies.
Think: “Will this help me solve a real problem, or just create a new one when the bill comes due?”
Do: Have a Repayment Plan
Before you hit that “get cash now” button, ask yourself, “How am I paying this back?” If you don’t have a clear answer, pause. Plan out how the loan fits into your monthly budget. Maybe that means cutting back on takeout (banana bread every Friday from your favourite baker will have to take a backseat) or postponing other expenses temporarily. It’s a good thing UBA’s Click Credit instant loan has a flexible repayment plan.
Don’t: Ignore Your Credit Score
Your credit score is like your financial reputation; it follows you everywhere. Instant loans can affect your score, especially if you miss payments.
Too many short-term loans can raise red flags for future lenders. If you’re constantly borrowing to cover basics, it might be time to review your financial strategy instead of stacking up debt.
Instant loans can be incredibly helpful, but only if handled with care. Be smart, read the fine print, borrow only what you need, and make sure your future self is thankful, not panicking.
So, the next time life throws you a curveball, you’ll know exactly what to do and what not to do.
