An interesting development, the Bankers Association of South Africa, Consumer Credit Association, Furniture Trading Association and the Micro Finance South Africa are planning to register a company that will assist consumers who cannot meet their financial obligations to restructure their debt.
It would seem the main players in credit have realized that consumers do need assistance, but not only that. I would assume the spinoff is that consumers will continue to pay their restructured debts which means lesser debts to write off and a degree of legal cost saving in summons and debt collection initiatives.
Click here to continue reading ‘Credit industry associations to assist consumers out of the debt trap’
In a recent comment post a reader posed some questions which I thought would benefit more readers as an article. So here goes…
Q) What do credit grantors use credit bureau reports for when you apply for credit?
A) When you apply for credit, the credit grantor uses your credit report to verify your identity as well as to assess their risk.
Q) What information is supplied to the credit bureau?
A) when ever an inquiry is made on your credit report a reason for enquiry is supplied by the credit grantor, the credit bureau also records that an enquiry was made and the credit provider in question. This information is shown on your credit report under the enquiry history section.
Q) Are all inquiries recorded by credit bureaus?
A) Not all enquiries are recorded by credit bureaus. Inquiries for forensic purposes are hidden, naturally.
So many people ask this question: “What does it mean to be blacklisted?”
Blacklisting is a term used within the credit industry (banks, retail stores, etc) to report anyone who does not pay their debts (including companies). Emphasis on not paying as opposed to skipping one or two payments!
This is done with the hope that that person will one day require credit and the credit grantor they approach will then do a credit report check (sometimes referred to as an ITC check) with a credit bureau on the subject. On that report will be personal details, employment details and credit behaviour.
Click here to continue reading ‘The meaning of being blacklisted.’
While it does feel great this time of the year. With so much buzz around with everyone running around to get Christmas gifts, finalise holiday preparations or stock up to entertain and feed visitors. I feel we should remember our situation here in South Africa with regards to over indebtedness, overspending, savings (or lack there of) and the fact that we recently had interests go up by another half a percent just last week.
So what I think we should do is first think of our January 2008 commitments before we spend the little we have. Ensure we have enough money to meet those much needed expenses like school fees, groceries, etc. Then let us think about the saving.
Let us look at saving in two ways. (1) Being how much of that bonus you can invest and (2) being actually paying more than you need to for your current debt since you would be saving on interest. This of the second as a future saving or a cash flow management strategy since you may even reduce your monthly payments in some cases.
And worse if you do not have cash try not to give into those “buy now pay later” schemes if you can. Remember a bargain is no bargain if you do not have the money for it, even worse when you won’t be able to meet the repayments next year.
Please join in the conversation, click here to comment and share your thoughts.
Many of us come to the shock of our lives at some point when we receive the news that “YOU HAVE BEEN BLACKLISTED”, while trying to apply for credit, buying that house or the car.
That is when most of us get to learn for the first time that there is this thing called a credit report or credit history. So what is a credit report?
Click here to continue reading ‘What is this thing called a credit report?’
People seem to be under the notion that “if I skip a payment I’m automatically in the dwang…”
No, you should not get blacklisted for paying late, depending on how late your payments came in and depending on your definition of blacklisting that is.
When you pay on time, late or skip a payment, your credit grantor will report this to a credit bureau.
Click here to continue reading ‘Can I get blacklisted for paying late?’
The long negotiated credit amnesty is coming to an end! You may have seen the campaigns by the National Credit Regulator and the Credit Information Ombud on TV or heard on radio stations. This is a call to South African consumers who may have adverse information, to take advantage of this once off opportunity to clean your slate.
To read more about the credit information amnesty click here and find out if you qualify.
P.S. Be patient when contacting the credit bureaus as they are currently being flooded with calls as consumers race against time!
First of all, blacklist is old school; the preferred term these days is adverse information. I am blacklisted = I have adverse information on my credit report. This is important and perhaps we can dedicate an article to the blacklisting terminology another day.
Back to the subject at hand… The window is closing in soon, take advantage of the “credit bureau amnesty” that has been put together specially for you. You have until September 2007 to have certain information on your credit report removed in a less costly fashion. This does not necessarily mean you do not have to pay your debts! Yes I love freebies too…
Click here to continue reading ‘Blacklisted? 16 days to go to recover your bad credit quickly’
Ever received an offer via mail when you’ve never asked for it? Be it a retails store card or a credit card offer?
Ever been offered a credit card by a teller at 1 of the chain stores that also have credit cards? This would happen if you use a credit card to pay for items.
The rationale behind was simple. If you have a card from my competitor you probably are good risk, so I might as well fight for market share errm, wallet share.
In some cases it would seem no proper affordability study would be done since you just received the offer by post… Ditto 4 retail store accounts
Enter NCA…
Click here to continue reading ‘Pre approved offers - fighting for the lion share of your wallet.’
‘picked up this article from Kulula.com’s inflight magazine, comic life.
In the article kulula.comic (as the magazine is called) tries to list what kulula.com have done or have been doing to support the NCA initiatives and / or protect the consumer.
Click here to continue reading ‘Kulula.com takes a stab at explaining the NCA to its “fans”’
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