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fish3r

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I’m a bit confused

So I don’t have a credit history. When I check my score it just says your credit score is unavailable. I’ve never taken up credit except for a corporate card which was linked to a business account I had which no longer exists however the card is still active

So naturally as expected when I apply for credit it gets rejected even the smallest loans reject.

Out of curiosity I applied through my bank account for a loan on the app and it was approved for a substantial amount. I didn’t proceed with it but then applied for overdraft and it was approved as well. How is this possible when everyone else rejects me for credit.

Is there some sort of catch here. Am I missing something? I don’t even earn that much. Never had any judgments or defaulted on anything. Have had the corporate card for about 7 years. Worst I’ve done is maybe been late on payment a handful of times.

I phoned the bank which is standard and they said it’s been approved just gotta send 3 month statements.

I’m assuming they approved but haven't run a credit check yet. But if so why would they approve it to then un approve it.

Any thoughts on this.
 
Welcome to the world of credit. I guess your bank was prepared to issue you the credit based on their known history of your accounts with them. As you start out with credit, my best advice to you is to always accept less than you qualify for (they will reduce your credit limit for you), and never ever miss a payment (or else you’ll have a credit record for the wrong reasons).
 
Start building the record. Get a credit card with a small limit and settle every month in full. No need for store acc or kak like that
 
That was most likely a system generated pre-approval. They might still reject it after they run the full process. You do have a better chance with them though as you have been a customer for a decent amount of time.
 
Banks have their own internal credit system based on your current accounts with them. Your interest might be high because you have no credit history though, but I would say take up whatever they offer and use it to build up credit history. It is very important to have credit score.
 
Also word of warning avoid debt as much as you possibly can. Using a credit card and settling every month is not what I'm talking abt here getting store acc or a small personal loan to buy tvs etc should be a no no interest is a wealth building killer rather save up and buy cash.
 
epah said:
Banks have their own internal credit system based on your current accounts with them. Your interest might be high because you have no credit history though, but I would say take up whatever they offer and use it to build up credit history. It is very important to have credit score.
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Interest free credit card period yes.

Personal loan, no
 
epah said:
Yes definitely credit card. Personal loans will sink you.
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When your credit card situation gets out of control, a fixed-term personal loan could actually save you. You can consolidate your debt (and repayments), you’ll get a lower interest rate than your short-term credit cards, and the peace of mind that your loan will be paid off after the fixed period. I’ve used that successfully before.

Revolving loans are a lot riskier … that’s where I’d recommend real caution. You can move money out of them really easily, so it’s handy for unexpected expenses … but way harder to pay down because it’s not a fixed term.
 
Foxhound5366 said:
When your credit card situation gets out of control, a fixed-term personal loan could actually save you. You can consolidate your debt (and repayments), you’ll get a lower interest rate than your short-term credit cards, and the peace of mind that your loan will be paid off after the fixed period. I’ve used that successfully before.

Revolving loans are a lot riskier … that’s where I’d recommend real caution. You can move money out of them really easily, so it’s handy for unexpected expenses … but way harder to pay down because it’s not a fixed term.
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I get emergencies etc happen but it's better to avoid it like the absolute plague
 
fish3r said:
Out of curiosity I applied through my bank account for a loan on the app and it was approved for a substantial amount. I didn’t proceed with it but then applied for overdraft and it was approved as well. How is this possible when everyone else rejects me for credit.
Click to expand...

How does anyone ever start a credit record except by having someone offer them credit even though they have no history?

Stands to reason it would be your bank because they can see your cashflow. They have inside info on your financial history, which is all any creditor is after.
 
Tomtomtom said:
How does anyone ever start a credit record except by having someone offer them credit even though they have no history?

Stands to reason it would be your bank because they can see your cashflow. They have inside info on your financial history, which is all any creditor is after.
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Cellphone contracts. Municipal services. Clothing accounts. These are all easy starts.
 
Tried that. Everyone just gave me the Evil eye...
 
My take on things...

If you don't have the cash for it, don't buy it ( Except for a house & maybe a car ).

Do you WANT it or do you NEED it?

I only do cash.

The item you want, is it an asset or liability?

Will it GAIN value or LOSE value over time?

Side effect, there are times I walk out of the store if I cannot afford the full amount.

Save, check deals, THEN buy said item.
 
Iamn0tageek said:
My take on things...

If you don't have the cash for it, don't buy it ( Except for a house & maybe a car ).

Do you WANT it or do you NEED it?

I only do cash.

The item you want, is it an asset or liability?

Will it GAIN value or LOSE value over time?

Side effect, there are times I walk out of the store if I cannot afford the full amount.

Save, check deals, THEN buy said item.
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You have taken the words out of my mouth!

We have very similar views on this matter :)
 
Snyper564 said:
You have taken the words out of my mouth!

We have very similar views on this matter :)
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An old mentor of mine (been in investment banking a decade) said to me this

Never fear debt and credit. Well managed debt and using the banks money will always tie you in better stead than buying something in cash.
But why?
The simple answer is use the banks money to buy your assets and use the credit to open up your own free cash for investment in other things. The bridge and difference between these things is the interest you pay on making the funds available.

Simply put, debt and credit is a good thing if managed properly. I understand the fear, the need to cut up credit cards. The difficulty in finding and getting credit, but anything worth having is difficult to obtain and difficult to maintain but ultimately worthwhile

My 2 cents anyway


To answer the OP - You cannot physically tell me, that you are unable to get a store account, an RCS account with any store, woolworths, Edgars, blabla. You cannot tell me, that your income from either business or salary is paid into your bank account and you cannot raise an overdraft or a credit card against the flow of funds. Complete utter rubbish to say, Its impossible to get credit, I dont know what to do

Unless you are literally paying cash for everything, live under a rock, never use your bank account wherever that may be and live like a pauper, you cannot possibly tell me that you cant find or dont know how to find credit. DM me if necessary or you are criminally charged or defaulted - credit is expensive, but not impossible to obtain - You just gave up on trying different avenues, its easier to pay cash and say "I want to live with no debt"
 
fish3r said:
I phoned the bank which is standard and they said it’s been approved just gotta send 3 month statements.
Click to expand...

Why would you have to send 3 months statements from the same bank that you're getting the loan from? They already have access to all that info. When I got my home loan from FNB (who I bank with) I didn't need to send them any statements because I already bank with them and they could access all that info themselves.
 
In some countries, credit is bank dependant as they dont have central credit bureaus. Its perfectly normal.

Here we have the Credit Bureaus and frankly they sit with too much power, and they sell all your details to whoever wants to pay for it. Yip all your details. ie what debts you have, your addresses, phone numbers etc. So quite frankly its a blessing and a curse to have a credit score at them. Even though you dont give them permission to do so, they still do so.

Avoid store accounts at all costs. They arent really worth it? With which bank are you with? Standard Bank has Ucount which is a great loyalty programme. I pay about R20pm to join it but I get back about R1500pm from them. I use the credit card for fuel, food, etc. But my credit limit is almost zero, and I transfer money into it, so its in a positive and not a negative. Score greatly then. You have to see what you need to go up the tiers.

Generally cash is better for you and the business. As they pay each time you pay by card. So you have R100 and you pay them R100, but they only get R97 if you pay by card, this goes all the way through to the supplier. So effectively you may only get R91 of goods for the R100 you actually have if paying by card. Its a complicated process, but the bank scores each time, from you alll the way to the suppliers, to the farmer.
 
Oh the World's Most Advanced Nation - ie Japanese does 85% of their daily transactions in cash.

Its for that reason and should there be a disaster or war, they have urged their citizens to keep cash for that reason.

Here if we have a blackout, and Eskom is offline. All the banks, atm's etc will be offline. How will you pay for groceries? Interesting predicament.
 
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