Poor or No credit history – What Can One
Do?
 Perhaps you always lived on a cash only basis but due to the ever rising co...
accounts on time, even if you pay regularly every month but are making late
payments it gets recorded on the credit bureau...
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Poor or no credit history what can one do?

Published on: Mar 4, 2016
Source: www.slideshare.net


Transcripts - Poor or no credit history what can one do?

  • 1. Poor or No credit history – What Can One Do?  Perhaps you always lived on a cash only basis but due to the ever rising costs of living need some financial assistance but nobody is willing to help you. Or you just turned 18 and started your first permanent job, and also as in previous scenario mentioned have no credit record as well and cannot understand why the financial institutions are reluctant to grant you credit.  Although you are not blacklisted they have a very good reason for that. Lending out money is always risky and the service providers usually base their decision to grant you credit on your past repayment history. Do not despair as there are solutions for the problem. Open a small clothing account, repayable over 6 months and pay it every month or even settle early. Hereby you will now have a credit history and can now re apply for a personal loan or any other type of credit should you be in need of it. You will also find loan providers willing to offer you a small loan over a short period with a high interest rate to give you a change to proof your credibility. Do not turn down the offer because it is small and expensive but use it as a stepping stone to start building a good credit record. After you made at least 3 instalments you should be able to apply for higher credit with cheaper interest rates. However should you not need further credit after this first application please does not open anymore accounts if not really necessary. Remember, you took these steps solely so you can get a credit score in case you may need help in the future.  Having a bad credit history?  You will be judged by you past credit history when applying for credit. A lot of factors will be taken into consideration but do not lose hope there are numerous companies willing to help you back on the route of rebuilding your credit record. Applying for a bad credit loan to finish up some small accounts can be a help. Just know that you will not be able to get a big loan and the interest rate will also be high as a result of your past history. Pay all your
  • 2. accounts on time, even if you pay regularly every month but are making late payments it gets recorded on the credit bureaus and will lower your score.  Do not get into the habit of making one loan after the other once your credit has improved. Only apply for any kind of credit when it is crucial. Try and live a simpler lifestyle, you do not need the latest cell phones or big screen TV sets etc, the older and cheaper (or 2nd hand versions) work just as good. Be responsible You can contact us at globalfinance@absamail.co.za

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