Last year I had a max of 4 loans, 1 credit card, and one store card. I only had one missed payment on the store card, which I paid on the 8th of the month. I have consolidated 2 of the loans, and settled the other 2 in December. This brings me down to just 1 loan, a credit card, and a store card.
I want to apply for finance, and to my understanding I don’t have a bad credit record or a bad score, it’s just that before I had too many credit obligations.
My question is should I go ahead and apply or should I wait a bit. I do not want to apply now and still be declined because I will not be able to wait for another 6 months.
Thank you for your question.
We would advise that you check your credit report before applying for your vehicle finance.
You can check your credit record with any credit bureau. TransUnion is the best, so we would suggest pulling your record there. By law you are allowed to pull your credit record for free once a year. Here is a link to TransUnion’s site.
Also keep in mind that there are 4 major credit bureaus. TransUnion, Experian, XDS and Compuscan. It can be that some of these other credit bureaus have not yet updated your profile, so it would be advisable to check your score with all of them.
You should also consider the fact that each time you apply for credit it negatively affects your credit score. If you have missed a payment in the last 6 months it might raise some questions but depending on what type of credit you want to apply for should not prohibit an approval for the credit application.
You are more that welcome to send your credit report to us to have a look and give you an interpretation of what you might or might not be able to do based on your credit report. Send it to [email protected] and address it to Wikus Olivier.
Have a great day.