Good Credit rating/record

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Fern9do

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I was watching ***us met Freek Sunday and I saw this guy that applied for a car loan from the bank and got turned down because he didn't have a good credit rating/record. I think it was because the guy alway baught stuff cash.
I'm kind of in the same boat, always buying things cash but i want to buy a car in december/january so what would be the best way to get a good credit record?
Do i buy something expensive(R3000-R4000) with my credit card and pay it off or do i buy a couple of small things(R300-R400) over the next couple of months?

How is this credit record thing calculated:(
 
hi cashmoney. Well, a credit record is to see whether you pay your accounts - so it doesnt matter the amount. they just do a check up on you to see that you pay your debt on time. If you dont have any accounts - they cant monitor this, hence you have to have an account in order to qualify to buy a car. I know it sounds ridiculous - but its true. sigh. As for your question - buy small stuff - doesnt need to be expensive - they just want to monitor if you pay it or not. goodluck!!
 
cashmoney said:
I was watching ***us met Freek Sunday and I saw this guy that applied for a car loan from the bank and got turned down because he didn't have a good credit rating/record. I think it was because the guy alway baught stuff cash.
I'm kind of in the same boat, always buying things cash but i want to buy a car in december/january so what would be the best way to get a good credit record?
Do i buy something expensive(R3000-R4000) with my credit card and pay it off or do i buy a couple of small things(R300-R400) over the next couple of months?

How is this credit record thing calculated:(
Click to expand...

Just have a telephone, cellphone, or electricity bill in your name.
Or get maybe an Edgars card, buy something on it, and then immediately pay your bill in cash - then u have a record.
 
Just get ure self a store card and buy some clothes and pay it of until you want to buy your new car
 
There are two credit ratings - one calculated and maintained by the credit bureaux and one maintained and calculated by the banks internally. When buying from a retailer such as a furniture store or appliance store on credit, or when trying to get a store card or cellphone contract, the first rating is used primarily. In the instance where you are wanting to use bank finance to pay for something, or get a bank loan of some sort, then the bank considers both their internal rating as well as your credit rating lodged and maintained by the various credit bureaux. So, in your case, you don't need to go and rack up credit if you are going to use the bank to finance your car. Your internal rating with the bank will be favourable unless you defaulted on payments or debit orders such as cheques. The banks will only turn you down if you have blemishes on your credit or internal ratings or if you simply can't afford the loan. Maintaining a good record with your bank and not defaulting on any payments (such as telecoms, doctors and other bills) would keep your rating up with your bank. By the way, as you already have a credit card with your bank you clearly do qualify for credit ;)

Edit: Note, the banks do submit default and judgement information to the credit bureaux as well.
 
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The sad thing about our modern economy is that, the more credit you have, the more people will give you, provided you pay timeously.

If you do not have credit to begin with, they cannot judge whether you are a good payer.
 
I always buy things with cash and only has a simple savings acc with FNB, and that's what happened to me as when I applied Virgin money CC and FNB CC online, Virgin turned down my application as I moved to a new company and they have a very long standard probation period (6 months) and I am still within this period (although my contract is permanent and enjoy all the other benefits like Med Aid and Retirement fund), online application with FNB also turned down as I do not meet their minimum credit rating, I submitted my payslip to FNB branch last Saturday and ask them to re-assess, and Monday noon I got a call from FNB and the application was granted.
 
Thanks for all the advice.
Seems abit messed up the way the system works but i can see the logic in it.
 
HakSaw said:
There are two credit ratings - one calculated and maintained by the credit bureaux and one maintained and calculated by the banks internally. When buying from a retailer such as a furniture store or appliance store on credit, or when trying to get a store card or cellphone contract, the first rating is used primarily. In the instance where you are wanting to use bank finance to pay for something, or get a bank loan of some sort, then the bank considers both their internal rating as well as your credit rating lodged and maintained by the various credit bureaux. So, in your case, you don't need to go and rack up credit if you are going to use the bank to finance your car. Your internal rating with the bank will be favourable unless you defaulted on payments or debit orders such as cheques. The banks will only turn you down if you have blemishes on your credit or internal ratings or if you simply can't afford the loan. Maintaining a good record with your bank and not defaulting on any payments (such as telecoms, doctors and other bills) would keep your rating up with your bank. By the way, as you already have a credit card with your bank you clearly do qualify for credit ;)

Edit: Note, the banks do submit default and judgement information to the credit bureaux as well.
Click to expand...

That's very informative. I guess i do have a good credit record with the bank because i did not even apply for a credit card. They foned me like 5 times! so i eventually said yes.
Must be that saving account of mine:)R1500 every month for the last 7 months.
Do you work for a bank by any chance?

Edit:Thanks for the link Niccia:)
 
Its a pleasure for the link :) hope you come right! What car you thinking of buying? if its not a Golf V GTi W12 - i dont wanna know! lol!
 
cashmoney said:
That's very informative. I guess i do have a good credit record with the bank because i did not even apply for a credit card. They foned me like 5 times! so i eventually said yes.
Must be that saving account of mine:)R1500 every month for the last 7 months.
Do you work for a bank by any chance?

Edit:Thanks for the link Niccia:)
Click to expand...
I worked for BankServ a while ago.
 
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