Question:
I was just wondering what is the procedure to apply for a home loan if I have a bad credit record?
Answer:
This week, our home loans expert from Bond Busters, Craig Chinnappen, answers our readers question.
If you have an impaired credit report, it does not necessarily mean that you will be declined financing when apply for a home loan.
You need to determine the degree of how impaired your credit report is.
I would suggest you visit My Trans-union and pull your credit report (you are able to access 1 free credit report a year, however, rather pay for one to get a more comprehensive report – the R80 report is adequate).
If there is legal action, judgements or defaults listed on your credit report, you will first need to remove this before the banks will lend to you.
The justice page on the government website is a good place to start.
If there are simply arrears on your accounts, but no legal action, you will need to catch up all the arrears on your accounts and maintain full and on time debt repayments for a period of at least three months before the banks will consider financing you.
Featured Question: Home loan with bad credit score
02 Dec 2014
Recent Articles
Featured Get personal with your finances – and tie the knot
As time passes, your financial products may not live up to your needs. Therefore, it’s important to take stock of what you’re paying for and adjust where necessary. We got in touch with financial advisers to find out how you can get your finances in order, and what you should do to ensure you’re financially stable.
Personal loan or business loan? The best way to finance your business
When starting your own business, you may have to rely on external funding. Perhaps you qualify for a personal loan, but would it be better to take out a business loan instead? We got in touch with a specialist to find out whether it’s best to take out a business loan or a personal loan to assist you with your ongoing business or start-up.
What to do when you’ve been denied a home loan
After months of scanning property sites and attending showhouse after showhouse, you’ve finally found what you’ve been looking for. But your dream of owning a home comes crumbling down when you receive the news that you’ve been denied a home loan. So, what now?
Best travel cards offered by top South African banks
Planning a trip abroad involves a lot of administration. You need to consider travelling arrangements, reasonable accommodation, and a daily itinerary. But have you considered how you’re going to pay your bills once you arrive? Besides considering bank costs, you also need to consider exchange rates.
Deals
Takealot January Big Sale
Price: Available on request
When: Until 31 January 2020
Where: Online
Annique Restore Package Special
Price: From R600
When: Until 31 January 2020
Where: Centurion
Ster-Kinekor Senior Citizens Discount
Price: Available on request
When: Daily
Where: Nationwide
Our suppliers and companies we review
