Check Your Credit Report Before Applying For A Loan

Tristan Powys (Credit Counselor) @ Lucid Living

Credit providers use your credit reports, from the credit bureaus, when deciding to approve your application for a home loan, vehicle finance or clothing account. Your credit report is used to determine the loan value, interest rate, repayment period and the size of your deposit.

National Credit Regulator (NCR) statistics show that 200 million enquiries were made by credit providers on consumer’s credit reports for the quarter ended March 2011. This was up by almost 60% percent compared to the same period last year – showing that more people are applying for credit.

However, according to the NCR, nearly half of all loan applications are being rejected, by credit providers.

This fact is supported by statistics released by the Credit Ombud. “Of all our cases last year, 70% of consumers contacted the Credit Ombud office for assistance after their credit application had been rejected due to a negative listing (blacklisting) on their credit report,” said van Schalkwyk in a statement.

The Credit Ombudsman said many consumers apply for credit, only to find out that their application has been declined due to negative listings on their credit report. “To avoid disappointment, it’s imperative for consumers to get a copy of their credit report and ensure the information is: accurate, up-to-date and free of errors, prior to applying for credit,” advised van Schalkwyk. “It’s in the consumers’ interests to ensure that their credit report information is up to date and accurate.”

If you find that the information in your credit report has errors, is out-dated or worse (does not belong to you), let Lucid Living resolve the issue with all the credit bureaus for you. Furthermore, if you have been blacklisted through no fault of your own (e.g. you were retrenched or incapacitated and your insurer did not pay your creditors on time) but subsequently rehabilitated your account, Lucid Living can apply to have the blacklisting removed from your credit report.