Tristan Powys (Credit Counsellor) @ Lucid Living
According to a recent poll conducted by bond originator Ooba, three quarters of South African consumers are unaware of their credit report. The poll revealed that 69% of respondents did not know their credit report status.
The latest statistics from The National Credit Regulator showed that there had been an increase in blacklisting. The number of consumers with a blacklisting or impaired credit report increased by 174,000 to 8.80 million. This represents 46.7% of consumers, comprising of 18.5% of consumers three months or more in arrears, 13.9% of consumers with adverse listings and 14.3% of consumers with judgments and administration orders.
Kay Geldenhuys, Property Finance Processing Manager at Ooba, said these results were very concerning as many consumers that had impaired credit reports were obviously unaware that they were on this list, or were there as a result of a “minor” violation.
“However, the result is often the same as both a negative credit report rating and an adverse listing (blacklisting) on your name can seriously hinder your ability to secure home loan finance.”
Geldenhuys said that when providing credit to consumers, banks looked to ensure that their investment was safe. “The riskier the investment, the less likely that banks will approve financing for a home loan. Consumers who are unaware of their credit report status are therefore at risk when applying for home loan finance and may have difficulty securing a mortgage.”
Geldenhuys added that one of the main reasons home loan applications were declined was because of the applicants’ credit report.
“It is therefore imperative for potential home owners to be aware of their credit report at all times. To optimise your chance of securing your desired home loan, make sure you keep a clean credit report by ensuring that all of your accounts have been paid to date before you apply for a home loan.” Get your credit report now from Lucid Living.
Potential home owners should consider prequalification as an option when shopping around for a home. “This ensures that the applicants’ credit report and affordability is checked upfront. Buyers also get a clear view of their budget range and can house hunt accordingly.”
“Most retail stores and banks’ blacklistings will remain on a consumer’s credit report for two years. If you do choose to close an account, settle the account balance and then contact the relevant credit provider to check that your name and credit report has been cleared. If you have a judgment on your credit report, clear the account and then contact an attorney to have the judgment rescinded.”
Geldenhuys said that if consumers did fall behind on payments they should immediately contact professionals who could offer assistance.
Recognising the extent and impact of the problem, Ooba has partnered with Lucid Living to offer Ooba Assist, a service that improves the home loan applicant’s credit report status, thereby increasing the success of the loan application.
Lucid Living will provide you with your credit report, negotiate discounted settlements (where you have fallen in arrears) with your creditors, rescind judgments, correct any errors on your credit report and clear unlawful blacklistings from your credit report.
Contact Lucid Living today (on 010 590 5617), so you can apply for your home loan with confidence.