Low Credit Score issues

[tumlo]

Hi Everyone

I am battling securing finance for a car, which I really need for a new job. Been employed for 8 months now with my current employer...take home R19800, with about R7000 going towards monthly expenses. Give or take, I almost always have R10k left every month. I opened a Mr Price Home account 5 months back, took out a cellphone contract on 3rd months now & a loan which I've been paying R4100 for the last 3 months (included in monthly expenses.) For some reason my transunion score is still low. When I applied for finance last month I was apparently declined for not having any credit history.

I need a car by December, can anyone advise on what I can do to get financed sooner. Or any alternatives to conventional financing

Thanks

 

[Stevi]

Also scared I am going to have the same problem one day. I only started working this year so would like to start building up a good score.
Any advice on how to get a good credit score?

 

[zizo911]

It took me a year to get a excellent credit record, one day late and R40 to have my name in shatters. It takes a while. Why don't you just save up and buy cash. With your surplus salary.

 

[DA-LION-619]

Won't a bigger deposit help?

 

[tumlo]

Won't a bigger deposit help?

I even put up a 35% deposit for a R70k car but still got declined; reason "no credit history.

 

[tumlo]

It took me a year to get a excellent credit record, one day late and R40 to have my name in shatters. It takes a while. Why don't you just save up and buy cash. With your surplus salary.

Yeh that's what its coming to. Reason I was looking for a financed car is that I will use it for work, lots of travels. So was hoping for something with warranty, maintenance and service plan. But guess an old vw will do if all else fails

 

[zizo911]

Yeh that's what its coming to. Reason I was looking for a financed car is that I will use it for work, lots of travels. So was hoping for something with warranty, maintenance and service plan. But guess an old vw will do if all else fails

Just make sure it well maintained. Next year you will have finance and then have a spare car as well.

 

[fdaniels]

I even put up a 35% deposit for a R70k car but still got declined; reason "no credit history.

Hmm, sounds like someone is stupid or lying to you. I bought a car for R180k with zero credit history, at all. Now that was a stupid thing to do because they ended up approving me at 17.6%. That was way back in 2009. Sold and bought a new car once I had a decent record.

tldr; It is possible to get finance without a credit record, but you will pay dearly for that 'privilege'.

 

[tumlo]

Hmm, sounds like someone is stupid or lying to you. I bought a car for R180k with zero credit history, at all. Now that was a stupid thing to do because they ended up approving me at 17.6%. That was way back in 2009. Sold and bought a new car once I had a decent record.

tldr; It is possible to get finance without a credit record, but you will pay dearly for that 'privilege'.

Yeh for some reason things don't add up. I mean my debt is way less than 30% of my income. I have paid up credit account for the past five months and my score has only moved up about 10 points!! Think I am being held ransom for not banking with the big 3 banks. Who did you finance with?

 

[fdaniels]

Yeh for some reason things don't add up. I mean my debt is way less than 30% of my income. I have paid up credit account for the past five months and my score has only moved up about 10 points!! Think I am being held ransom for not banking with the big 3 banks. Who did you finance with?

Wesbank.

 

[KalMaverick]

Are you actually using the Mr Price Home account?

It doesn't help having it and not using it, also it doesn't help having it and using it and then paying off the full amount in the same month either.

Utilise it around 30-40% and pay around the normal monthly amounts.

 

[Pearson6]

The best and fastest way to build up a credit score is get a credit card from the bank you bank with, if I may ask who do you bank with and what account type do you have?

 

[Pearson6]

Yeh for some reason things don't add up. I mean my debt is way less than 30% of my income. I have paid up credit account for the past five months and my score has only moved up about 10 points!! Think I am being held ransom for not banking with the big 3 banks. Who did you finance with?

PM me Tumlo, I have a few friend working within the Avaf space, you can speak to them they will be able to assist you i know

 

[tumlo]

Are you actually using the Mr Price Home account?

It doesn't help having it and not using it, also it doesn't help having it and using it and then paying off the full amount in the same month either.

Utilise it around 30-40% and pay around the normal monthly amounts.

I've used up in that range; always pay up 50% of what I use immediately and pay an extra 10rands or so (50 maybe) at the end of the month.

 

[tumlo]

The best and fastest way to build up a credit score is get a credit card from the bank you bank with, if I may ask who do you bank with and what account type do you have?

I bank with Capitec, they don't offer that facility. Took out a loan R50k loan with same bank - had a family emegency - which i am paying off over 16months; I've never defaulted for the past 3months. I applied for the ABSA transact credit card online, which is meant for people looking to buildup credit record, but got declined :wtf:

 

[kianm]

A credit card could help. I don't remember waiting too long to get my finance and i only had a CC and a just for the record miserly account with Edcon which i was paying like R100 a month. I put in a good deposit and finance approved with no issues

 

[Pearson6]

I bank with Capitec, they don't offer that facility. Took out a loan R50k loan with same bank - had a family emegency - which i am paying off over 16months; I've never defaulted for the past 3months. I applied for the ABSA transact credit card online, which is meant for people looking to buildup credit record, but got declined :wtf:

Depends on the number of enquiries done on your name, the car that you were looking at Financing was it new or a used car? As I know used car dealers applies everywhere at one and they stuff up your score.

 

[tumlo]

Depends on the number of enquiries done on your name, the car that you were looking at Financing was it new or a used car? As I know used car dealers applies everywhere at one and they stuff up your score.

I have 16 inquiries done, 14 where for credit with 7 approved and 2 for employment since the beginning of this year. It was a used car. Dealer applied to MFC and Wesbank, I do not understand why it appears as 2 separate inquiries as it was done on same day. I've read up that an application for vehicle finance done within one week with diff banks should count as one. I've since queried it with transunion. But major issue that remains is "low credit history", where as I have a trail for the last 6months with both revolving and limited credit.

 

[acidrain]

Credit Bureaus can sometimes be delayed with updating of credit information. I know mine is only showing until September.

Also some of your credit facilities are still very young so it probably won't help your credit right now. Further to that, having inquiries done on your account can also affect your credit rating so the more inquiries done over a short period will have a negative affect.

Edit: This is just my understanding but I could be wrong, but credit rating is based on trend which requires a sufficient period in order to accurately establish this trend.