Streaming issues? Report here
John Maytham 2019 1500 BW John Maytham 2019 1500 BW
Afternoon Drive with John Maytham
15:00 - 18:00
volume_up
volume_mute

Up Next: The Money Show with Bruce Whitfield
See full line-up
Afternoon Drive with John Maytham
15:00 - 18:00
Home
arrow_forward
Business
fiber_manual_record
Lifestyle

Always ask why your credit application was rejected (and other useful tips)

27 June 2018 3:09 PM
Tags:
Debt
Consumer
Spending
Credit card debt
Retailers
Wendy Knowler
credit record
#ConsumerTalk
store credit
credit provider

Credit providers such as banks, cellphone companies and clothing stores must justify why a credit application has been rejected.

South Africans have a right to be told why their credit applications have been turned down, advises consumer journalist Wendy Knowler.

While credit providers such as banks, cellphone companies and retail outlets have the right to reject a credit application, they have to offer reasons as to why.

I don't think many South Africans realise that you don't just have to accept a rejected credit application.

Wendy Knowler, consumer journalist

They are legally obliged to tell you the reasons if you ask. In most cases they won't tell you if you don't ask.

Wendy Knowler, consumer journalist

In terms of the National Credit Act (NCA), Knowler says consumers have the right to be provided with the reasons why their application was declined.

Credit applications are often rejected because applicants don't meet the criteria of creditworthiness or due to an adverse listing on your credit record, she says.

A rejected credit applications is a red flag for a consumer to investigate their credit record for any fraudulent activity against their name.

Less than 5% of South Africans regularly check their credit records... 70% of those who lodge a complaint about an unjustified adverse listing have them removed.

Wendy Knowler, consumer journalist

WHERE TO CHECK YOUR CREDIT RECORD FOR FREE

The NCA entitles you to one free credit record check a year, with each bureau. Here are the contact details of four major credit bureaus:

  • TransUnion: www.mytransunion.co.za, 0861 886 466

  • Experian: www.experian.co.za, 0861 105 665

  • XDS: www.xds.co.za (011) 645 9100

  • Compuscan: www.compuscan.co.za 0861 51 41 31

Adverse listing on your credit record?

If you disagree with a listing you can lodge a dispute with the credit bureau. If, after 20 days, the adverse listing remains, you may approach the Credit Ombud for help.

Call 0861 662 837, e-mail Ombud@creditombud.org.za or sending an SMS to 44786 and they will call you back.

South Africans also have the right to request a quotation from the potential lenders they consult.

The NCA calls it a “pre-agreement” statement and quote. The quotation shows the borrowed amount, deposit payable, if applicable, interest charged, period of repayment, date of first installment, date of last installment, as well as extra charges such as initiation fees, monthly service fees and credit life insurance.

These quotations are valid for five business days, in terms of the act.

Requesting a quotation helps consumers weigh up their credit options without any obligation.

HOW YOUR CREDIT SCORE IS CALCULATED:

Our credit information, along with employment history, income, affordability assessments and the type of credit we apply for, is summarised on our credit profiles.

Each credit bureau calculates a credit score - a three-digit number - for every credit active consumer, using a complex formula that evaluates how you pay your bills, how much debt you carry and how all of that compares to other credit active consumers.

In effect, it reveals – in a single number – what your credit report says about your management of your existing credit.

Key factors which affect you credit score:

  • Account payment history: how you manage your accounts and whether or not you pay the entire installment amount on time.

  • Debt level: how much you owe and how much of your available credit you’re using.

  • Negative information: publicly available information in your credit record, such as bankruptcies and judgments, indicating you did not honour a particular debt obligation.

  • Length of credit history: how long each of your accounts has been open.

  • Account application and enquiry activity: how many account applications you submitted within a short period of time, and how many new accounts you opened.

Take a listen to the insightful discussion during Consumer Talk:

Every Wednesday, on The Pippa Hudson Show, Wendy Knowler provides useful insights and tips on how to make the most of your buying power.

For more stories visit the ConsumerTalk feature page.

Got a consumer case you need help resolving?

Email: consumer@knowler.co.za, put Cape Talk in the subject line, followed by the issue e.g. cellphone contract dispute.


27 June 2018 3:09 PM
Tags:
Debt
Consumer
Spending
Credit card debt
Retailers
Wendy Knowler
credit record
#ConsumerTalk
store credit
credit provider

More from ConsumerTalk with Wendy Knowler

cellphone-mobile-phone-user-chat-texting-SMS-apps-city-skyline-123rf

Here's how to stop dodgy subscription services from depleting your airtime

29 July 2020 6:44 PM

Unwanted charges on your cell bill? Struggling to unsubscribe from rogue content services that you never signed up for? Here's what you can do.

Share this:
Read More arrow_forward

covid-19-hand-sanitiser-face-mask-hygiene-sanitation-coronavirus-123rf 123rf

You may be using a hand sanitiser that doesn't work against Covid, expert warns

8 July 2020 6:04 PM

Hand sanitiser has become a highly sought-after product amid the coronavirus pandemic. But are all of them effective? Wendy Knowler investigates.

Share this:
Read More arrow_forward

Missing Image Placeholder

This insurance company says it is paying out business interruption claims

24 June 2020 8:40 PM

Wendy Knowler, Consumer Ninja, investigates non-payment of business interruption claims during the Covid-19 lockdown.

Share this:
Read More arrow_forward

woman-on-cell-phone-pexels-freejpeg

'He sent through a fake bank payment notification' - beware Gumtree scammers

3 June 2020 4:47 PM

As South Africans look for ways to make extra cash, Gumtree South Africa has warned consumers not to fall prey to online fraudsters.

Share this:
Read More arrow_forward

Missing Image Placeholder

The Ombudsman for Short-Term Insurance report - what were the complaints?

27 May 2020 7:58 PM

The Ombud for Short Term Insurance’s aim is to resolve short term insurance complaints ''fairly, efficiently and impartially''.

Share this:
Read More arrow_forward

Missing Image Placeholder

When credit life insurance goes wrong because of a UIF payment

20 May 2020 7:51 PM

Wendy Knowler, consumer Ninja, on the small print and pitfalls of credit life insurance.

Share this:
Read More arrow_forward

191118bankingjpg

The banking report is out - our Consumer Ninja takes a look

13 May 2020 8:00 PM

The annual banking ombuds report has been released. Were they good, were they bad; how many complaints have been received?

Share this:
Read More arrow_forward

Cars-For Sale-Automotive-Industry-Dealership-Vehicles-service-wheels-123rf

Car sales and repairs reopen, but no clarity on motor licensing offices just yet

13 May 2020 5:17 PM

Car dealerships and repair shops have been allowed to reopen under very strict conditions, explains consumer journo Wendy Knowler.

Share this:
Read More arrow_forward

claim-deniedjpg

Consumer Ninja: Many credit life claims are being rejected

6 May 2020 8:00 PM

It seems many credit life claims are being rejected. Here are nine companies that were named and shamed in a new report.

Share this:
Read More arrow_forward

Missing Image Placeholder

Do I still have to pay my gym membership (and other consumer-related questions)?

29 April 2020 3:31 PM

You can send your consumer-related questions and queries to consumer journalist Wendy Knowler via consumer@knowler.co.za

Share this:
Read More arrow_forward