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 Are you entitled to your spouse’s pension after divorce?
Divorce means more than just parting ways with your partner. It may also involve parting ways with your assets. The Divorce Act states that your retirement fund forms part of your assets. This means that it will be considered when dividing up your assets.
Retrenched – what payments are you entitled to?
In the current struggling economic climate, retrenchments are a regular occurrence and not everyone survives the cut. If you find yourself on the receiving end of retrenchment you may have questions about the payments that are due to you.
Do you want to settle your debt?
You may be considering settling your credit account, whether it’s a credit card or various store accounts, now may be as good a time as any. This especially if you have saved, or you received a tax return or salary bonus.
Can you afford a personal loan?
Taking out new debt is not always a choice. However, if you’re not pressed by a medical emergency or an unforeseen disaster, it’s worthwhile considering whether you can actually afford it. But what does it mean to “be able to afford a personal loan”? What percentage of your income should you not exceed dedicating to it?
Deals
Eat for less on Tuesdays at Panarotti’s
Price: R59.99
When: Tuesdays
Where: Nationwide
Get discounts with Clicks ClubCard Seniors Programme
Price: Available on request
When: Daily
Where: Nationwide
Amani Spa Voucher Special
Price: R1000
When: Daily
Where: Cape Town, Jhb, and Port Elizabeth
Our suppliers and companies we review
