Debtfree Magazine Jan 2019

MYTH BUSTING YOUR CREDIT REPORT
I HAVE A BAD CREDIT SCORE
SO I CAN’T GET CREDIT
This is simply not true. You may end up paying a higher rate of
interest due to your poor payment history, but if you can afford credit,
then you should be able to gain access to it.
After changes to the National Credit Act a decade ago, credit providers must
ask how much you earn and what you are currently spending your money
on each month. This will include any other debts you have. If you then still
have some money available (after making allowances for emergencies) the
credit provider will know how much you can pay them back each month.
They can then figure out how much to loan you. eg. If you earn R3000
a month and spend/set aside R2800 each month towards your costs and
saving, then you have R200 available as a possible monthly debt repayment
installment. The credit provider can then decide how many months they
want to get R200 back from you, and how much they are prepared to lend
you.