I have recently returned to South Africa from abroad where I was living for the 8 years. I have no debt or credit history and as a result am unable to by a car or get my life in this country “moving forward”.
Do you have any recommendations on how to address this issue.
Hi there. Interesting question.
Getting approved for credit has a lot to do with your credit profile. Most people think that getting a quick clothing account will sort them out. A clothing account is the easiest type of credit facility to get, but do not carry much weight. Unfortunately, the higher risk credit facilities carry more weight when it comes to adding, or deducting from your credit score.
The quickest and most effective way to get a credit history which will assist you with getting finance would be to take out a small personal loan which is repaid over the course of 6 months. Do not settle it early, keep going for 6 months.
A credit card also works well, but there is no definite beginning and end to it. A loan gives you a starting balance, with a term and a fixed instalment. There are a lot of financiers you can approach. Just make sure that the one you do eventually approach is registered with the NCR (National Credit Regulator).
Also, your chances are better to get approval if you approach a smaller financier. The banks have a lot of red tape, whereas a smaller financier could be in the position to make an executive decision to approve your loan application. On the other hand, I would also advise to shop around for vehicle financing. Try all the providers. Try to get hold of someone senior and set up a meeting.
Alternatively, there are companies who also rent to own type agreements where you do not apply for financing but actually, rent the vehicle, maintenance and insurance included. Guys like http://www.easyvehicles.co.za/ might be able to assist you.
Have a great day.