Reason for decline of credit
Embarrassed because your credit application has been declined? Find out why and what you can do to turn a no into a yes!
Being rejected for credit can be very difficult, especially if you need it for a specific purpose such as paying for school fees or buying a new home. Before you immediately make another application, find out why you were rejected. In terms of the NCA, you have the right to be given the reasons in writing for why your credit application was declined.
Perhaps you have been declined credit because of your current financial position, fraud or missing information. Below different possible reasons for a decline of a credit application have been given, as well as the steps you can take to help you make your next credit application more successful.
Reasons for credit decline
|Reason||Explanation||What You Can Do|
|Possible fraud||There has been a fraud alert from the South African Fraud Prevention Service (SAFPS) on your credit profile.||
|Your ability to make repayments (lack of affordability)||Your current income will not support the proposed credit repayments on top of your existing commitments.||
|Your account conduct||You have overdrawn an account or had insufficient funds to meet a payment with the credit provider in the recent past.||
|A report from a credit bureau||Due to information from a credit bureau, the application could not be approved.||
A credit bureau does not make the decision to grant credit; credit providers do. Credit providers use the information provided by credit bureaus together with their own credit-granting policies and industry regulations to determine whether you qualify for credit or not.
Credit providers have their own credit rules and criteria set by internal policy and procedure, which have an impact on their decision on whether or not to grant you credit. This is also based on their credit risk appetite. Therefore, your application for credit may be declined because you did not meet the internal lending criteria of the specific credit provider.