What is your Credit Worthiness

23
May

By Marelize Lubowski (Manager – FinServe Property)
marelize@finservegroup.co.za
What is your credit worthiness?

The importance of a clean credit record is vital for tenants. Landlords are looking closely at tenant’s credit history in these uncertain economic times.

With the rising cost of living and economic uncertainty placing pressure on consumers, many landlords have side-lined their home ownership aspirations and are opting to remain in the rental market in the interim.  

Due to the changes in legislation, landlords and management agents have introduced strict screening criteria to ensure they select the right tenant from the start. The creditworthiness of a tenant has become imperative with landlords to establish whether the potential tenant has a clean credit history.

Credit checks are run on tenants to establish if the tenant:

  • can afford the rent
  • has been paying other creditors on time and in full (cell phone, current or previous rent, clothing accounts, credit cards, loans etc)
  • is continuously applying for loans with credit lenders. This is an indication that the tenant regularly incurs a money shortage, therefor may default on rent
  • has any defaults, judgments, notices, against them
  • is under debt review or under dispute

A clean credit record with a good credit score is invaluable. A tenant must be willing and able to pay the rent on time and in full. A high income does not surpass a good and clean credit score.

Factors that negatively impact the consumer’s credit scores:

  • slow or missed payments
  • opening too many accounts
  • numerous credit enquiriers
  • co-signing for a third party

Know your credit score and check your credit record for inaccuracies. Consumers can obtain a free credit report yearly.

Get your credit report on one of the below sites:
1. www.transunion.co.za
2. www.xds.co.za
3. www.compusan.co.za

We believe that ‘Sharing is Caring’, and therefore we humbly encourage you to share this information freely with your friends and family. If you have any queries, please feel free to contact us on 0860 994 094 or contact the writer directly.

The information contained in this communication and any other communication from the FinServe Group of Companies is subject to our disclaimer which can be read here.

Visit us at www.finservegroup.co.za to experience ‘Unorthodox Financial Freedom’

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