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Impact of credit report on vehicle finance

Jul 23 2014 13:35
Fin24
A Fin24 user wants to know what the impact of her credit report will be on her chances to obtain vehicle finance. She writes:

My accounts used to be in arrears until I paid them all off two years ago. They were all removed from my credit report, except my Foschini account, even though I had paid it up.

My question is: Will I qualify for car finance even though Foschini is still on my credit report?

I am earning R9 000 and have no active accounts.

Rudolf Mahoney, head of research at WesBank, responds:

As it was more than 12 months ago that your accounts were paid off (in other words not within the last year) then it is likely that it will not necessarily negatively impact your ability to secure finance.

That said, it is always good to remember that, if you have a deposit for the vehicle as well, this does make applying for finance easier.
 
If you still have any accounts in arrears, it is important to pay them off and maintain a good credit record for as long as possible before applying for financing, as this does impact your credit rating.

Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.

- Fin24

Disclaimer:

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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.

wesbank  |  money  |  money clinic  |  vehicle finance
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