Want to improve your chances of getting your loan approved – at a good rate? These five tips help you prepare before you apply.

Tip 1: Check your credit report first

Lenders check your record with credit bureaus such as TransUnion, Experian or XDS. You're entitled to one free credit report per year from each bureau.

What to do: Check that all accounts and details are correct, and dispute any errors with the bureau.

Tip 2: Make sure the loan is affordable

By law, lenders must assess your affordability: your income after deductions, living expenses and existing debt.

What to do: Only apply for an instalment you can comfortably afford. A smaller amount can improve your chances.

Tip 3: Have your documents ready

  • Your green barcoded ID book or smart ID card
  • Your latest 3 months' payslips
  • Your latest 3 months' bank statements
  • Proof of residence not older than 3 months

What to do: Have digital copies ready to upload as soon as you accept an offer – it speeds up the payout.

Tip 4: Pay your accounts on time

Payment history is one of the biggest factors in your credit score. Missed payments on store cards and cellphone contracts count against you.

What to do: Use debit orders so you never miss a payment, and pay down store and credit cards before you apply.

Tip 5: Avoid many separate applications

Each direct application can register an enquiry on your credit record. Many enquiries in a short time make lenders cautious.

What to do: Compare offers with one application through Finvo instead of applying at lender after lender.

What do lenders look at?

  • Income and employment: a stable, regular income – permanent employment helps
  • Credit history: how you've handled credit in the past
  • Existing debt: how much of your income already goes to repayments
  • Bank conduct: for example returned debit orders
  • Debt review: you can't take on new credit until you have a clearance certificate

What if your application is declined?

  • Ask the lender for the main reason – you have the right to know
  • Check your credit report for errors or negative listings
  • Pay down existing debt and try again later, or apply for a smaller amount
  • If you're struggling with debt, speak to an NCR-registered debt counsellor