Share

Fresh out of debt review, needing car finance

accreditation
(Shutterstock)
(Shutterstock)

A Fin24 user, who has just come out of debt review, was told he first needs to get his credit score up before he can obtain vehicle finance. He writes:

I was under debt review for two years, completed paying all the debt and am awaiting a clearance certificate.

During the two years none of the creditors paid updated anything on my monthly report with ITC.

This is a concern to me as I paid double the amount per month originally requested and am sure this failure to update has negatively impacted my credit score.

I was told that the National Credit Regulator (NCR) will clear my record once they receive the clearance certificate from Debt Busters.

My concern is that I checked with some vehicle finance providers and they are saying that I would have to wait six to twelve months before I can apply for credit to first get my credit score up.

Is that correct? I really need to purchase a car. What else can be done to get finance and do all banks work on the following principle?

A spokesperson of Absa responds:

Each bank will apply a credit assessment process that considers past credit and payment behaviour to determine the likelihood that the new loan will be repaid as agreed.

Your credit score is a function of this historic behaviour, and will be higher the better your credit history.

Credit scores generally place more weight on recent than on past credit performance, and so, in your case are likely to improve with time (and allow you to qualify for a new vehicle finance loan) if you maintain your credit lines in good standing.

Absa does not apply a strict time-based rule to customers out of debt review applying.

- Fin24

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.99
-0.3%
Rand - Pound
24.07
+0.2%
Rand - Euro
20.58
+0.0%
Rand - Aus dollar
12.36
+0.5%
Rand - Yen
0.13
+0.7%
Platinum
902.95
+0.1%
Palladium
998.75
-0.7%
Gold
2,153.42
-0.3%
Silver
24.92
-0.5%
Brent Crude
86.89
+1.8%
Top 40
65,837
-0.6%
All Share
72,075
-0.5%
Resource 10
53,082
-0.4%
Industrial 25
99,417
-1.1%
Financial 15
16,638
+0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders