What is a credit check and how does it affect my credit history?
- Details of the identity of the person which include the name.
- Residential address.
- Work place information.
- Changes in the address.
The consumers payment history would be reflected in the report, as well as any open accounts and loans that are present. Also present would be any previous adverse payment history, judgement, collections and general black listing. If you have any of these present on your credit report, then your ability to get a loan will be very difficult and it may even impact your chances at finding gainful employment.
Every South African is entitled to claim his or her free credit report annually from one of the four big credit bureaus. However, checking your credit report at least three to four times a year is advised and especially if you are planning a large credit purchase in the not so distant future. Taking steps now to fix any issues that may appear on your report or improve your score by paying off a clothing account will stand you in good stead with the credit providers and in many cases will lead to you being able to negotiate a better rate of repayment.
If you are empowered by understanding your credit history and how a credit provider will determine risk, you can use this information to get the best deal out of the situation. By educating yourself you can actually end up saving money. To give you an example, if you could save a percentage point or two on a new car purchase because you are not seen as high risk, this will save you a lot of money over the repayment period.
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