When you owe a bank, financial institution or any other credit grantor money and you are not keeping payments up to date, they will try and make arrangements with you for the outstanding amount. If you fail to keep up with any payment arrangement or they cannot get hold of you, the account will be handed over to a debt collector.
For better or worse, for richer, for poorer
Marriage is a wonderful union but it is not just two people coming together. Invariably, finances and to an extent credit profile also become intertwined. Although you will still have a personal credit score, if you make joint purchases, a home, for example, this will affect both parties. The upside is that most lenders will look at the couple’s joint income which will be to your advantage.
Taking good care of your credit rating is essential if you are looking to buy your first house or even that dream car you have always longed for. Any financial institution, be it a bank or other credit facility will always assess your creditworthiness to decide if they are willing to lend you the money needed.
But, do you know how to tell if your credit is in good shape or not? Knowing the difference between your credit score and credit report is of the utmost importance in seeking credit.
Nothing is more disappointing and embarrassing than being declined finance. This is especially true if you believe your credit history to be in good standing.
If you believe the information is incorrect you can log a dispute with TransUnion to try and get the issue solved as quickly as possible. Inaccurate credit information lowers your credit score and in some cases could indicate fraudulent activity. There are no fees involved when you log a dispute.
If you find yourself in the predicament of not being able to secure credit due to your credit record score being low, yet you are unaware of why this has happened, you can log a dispute with Compuscan and ask them to investigate.
Late payments are the biggest reason for a low credit score…
Let’s face it, they can happen to anyone at any time due to circumstances and unfortunately can have a devastating impact on your credit score.
The downside of this is that it restricts the amount of credit you will qualify for and can lead to disappointment when you approach your financial institution for a loan.
It is always a good idea to check your credit report from time to time. Mistakes do happen or there is even a chance there is an outstanding debt you have forgotten about.
It is always better to be informed than to get an unpleasant surprise when you apply for credit.
There seems to be a lot of confusion regarding credit bureaus and how they determine our credit scores. For many years the industry was shrouded in secrecy and the man in the street had little no access to their own vital credit information. Fortunately, they are now a lot more transparent and the process is becoming a lot easier for the average Joe to understand. It has also been regulated for some time now that the various bureaus have to give you access to at least one free credit report per year. This has gone a long way towards demystifying credit reports but many myths and untruths still prevail.
A lot of ignorance and misinformation exists surrounding the credit industry and the functioning of credit bureaus in South Africa. There have also been a number of changes in recent years, mostly designed to offer additional protection to the consumer.
It is important for people to understand how the system works so that the are able to maintain a good credit rating or improve one that is poor.
Next time you’re at a dinner party and there's a lull in the conversation, ask people about the biggest bargain they have ever bought. And then fill everyone’s glasses, as you’re probably in for some fantastic stories.
When it comes to bargain hunting, sheer luck sometimes comes into play, such as when I drove past a donkey cart on its way to the dump and spotted an antique oak washstand with marble top about to be sold for firewood.