Fresh out of debt review, needing car finance | Fin24
 
  • Covid-19 Money Hub

    The hub will help answer your business and money questions during the coronavirus crisis.

  • Cigarettes

    The tobacco ban is a 'deal with the devil' that undermines transformation, say lobby groups.

  • Easing the Lockdown

    Liquor makers want bars to become drink-collection points when the alcohol ban lifts.

Loading...

Fresh out of debt review, needing car finance

Oct 29 2014 15:45
Fin24

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.

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Comments have been closed for this article.
 

Company Snapshot

Voting Booth

How has Covid-19 impacted your financial position?

Previous results · Suggest a vote

Loading...