In terms of the National Credit Act, if a credit provider fails to conduct an affordability assessment before advancing credit to you, the provider could be guilty of entering into a reckless credit agreement.
However, Botha says, most consumers have little idea of how to get a credit report, how to evaluate it and how to go about repairing any damage, which is the rationale for their joint initiative with LUCID.
Paying a bad debt is not enough to rehabilitate your credit rating, so a credit rehabilitation provider like ooba’s partner, Lucid Clear Credit, will take the legal steps to ensure that your credit report is updated immediately.
CONSUMERS who bought houses before June 1 2007 are urged to check their bank statements to establish whether they have been overcharged on their home loan administration fees.
This bodes well for lenders, so in the meantime, don’t look for any dramatic relaxations. To get a home loan, you’ll generally need high credit scores, big down payments, plenty of time and reams of documentation.
“A borrower with a credit score of 702 will pay a one-fourth-percent higher interest rate than someone with a credit score of 720, even though those are both good credit scores,” said Adv Randolph Samuel, CEO of Consumer Foundation of SA, a consumer rights education NGO.
Some 39 in every 10,000 home loan applications were detected as fraudulent during the second quarter of this year, a 23% year-on-year increase, said Experian.
“A-grade” purchasers by virtue of the following three imperatives: a clear credit report; the ability to buy without having to sell first; and finally, a pre-qualification from a bank or mortgage originator.
“Simply put, if you want a good interest rate, you need to have a good credit score,” said Thambiran. “But if your credit score isn’t ideal, understand that there are some basic ways to repair it.”
Adv Randolph Samuel, CEO of the Credit Foundation of South Africa, said “the housing market has been hugely affected by the credit crunch and economic downturn and first time buyers have been hit the hardest”.