How to get approved


In the current market climate a lot of people are under the impression that they need to avoid credit however this is not the case. Rather try to keep a healthy credit profile,

 

Why do we say this?

 

The answer is simple if you don’t have a credit record no-one in this industry knows you or your credit behavior, meaning that they won’t know whether or not you are a consistent payer and if you have a reliable credit status.

So how does one keep a healthy credit profile?

Firstly you need to apply for credit in some form I suggest you look at something small and affordable, do not take on a debt that you will battle to repay and have a higher chance of missing a payment on. Also do not open too many accounts within a short period of time because adding too many new accounts at a time can give the impression that you are unable to handle credit responsibly.

Secondly do not miss or short pay an installment as late payments have a very dramatic effect on your credit profile. If you have previous unpaid accounts pay them now and keep the payments ongoing.

Thirdly update your credit profile regularly to ensure that no mistakes are being made and that your details remain updated. Incorrect or outdated information also affect your credit score. You are entitled to 1 free report yearly and I suggest requesting a report to ensure all your details are accurate.

Also Never max out your accounts Keep your credit card balances as low as possible.

 

And lastly if you know that you will have a problem paying your debt on time, contact your creditors immediately. By doing this you can make payment arrangements and negotiate with them, this will keep at least some late notes off your profile.

Always remember that no financial institution will ever lend money for a home loan if the applicant has a bad credit history. This is why when the institutions receive an application for a home loan, they will always look at your credit profile to determine if they’ll get the money that was borrowed back. So if records give an indication that the applicant has struggled to pay back credit or to keep up with payments the institutions will decline the request for a home loan.

If you have a credit-related problem, you can contact one of the following credit bureaus:

·                                 Consumer Profile Bureau: 0861287328

·                                 Transunion: 0861482482

·                                 Experian: 0861105665

·                                 Compuscan: 0861514131

·                                 XDS: 0860937000

·                                 Kredit Inform: 011 7772700

·                                 Micro Lenders Credit Bureau: 0861287328

            Thank you to Edwin Wallace for the informative article, Edwin is an expert in his field and can be contacted below.

             T: +27 (0) 11 745 5081
             F: +27 (0) 86 682 1059
             C: +27 (0) 82 074 0879
             E: edwinw@sahomeloans.com
             W: www.sahomeloans.com

Bookmark and Share

Recent Entries

« Properties for sale.
iafrica.com | property | news Real growth returns »

This entry was posted on Wednesday, December 9th, 2009 at 6:00 am and is filed under Buying, Buying to let, Interesting all sorts, market trends. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

  • Nice. This great advice. Your blog is getting a nice character. Keep on posting.
  • jkproperties
    Thanks Johan
    I appreciate the input.
    Have a great day

    Jaco Viljoen

    JnK Properties

    Cell 082 712 4352

    Tel 011 892 3206

    Fax 086 652 0325

    P Please consider our environment before printing this email

    www.jkproperties.co.za

    http://jkproperties.ilocals.info



    We have just started a new agency and are working harder than everyone else
    to find listings.



    If you know someone that wants to sell their home in the benoni area please
    refer them to us.

    Thank you.



    Dont forget we need buyers too.



    To subscribe to my newsletter and receive property news updates please
    follow this link.



    subscribe here now.
blog comments powered by Disqus