1. Poor or No credit history – What Can One
Do?
 Perhaps you always lived on a cash only basis but due to the ever rising costs
of living need some financial assistance but nobody is willing to help you. Or
you just turned 18 and started your first permanent job, and also as in previous
scenario mentioned have no credit record as well and cannot understand why
the financial institutions are reluctant to grant you credit.
 Although you are not blacklisted they have a very good reason for
that. Lending out money is always risky and the service providers usually base
their decision to grant you credit on your past repayment history. Do not
despair as there are solutions for the problem. Open a small clothing account,
repayable over 6 months and pay it every month or even settle early. Hereby
you will now have a credit history and can now re apply for a personal loan or
any other type of credit should you be in need of it. You will also find loan
providers willing to offer you a small loan over a short period with a high
interest rate to give you a change to proof your credibility. Do not turn down
the offer because it is small and expensive but use it as a stepping stone to
start building a good credit record. After you made at least 3 instalments you
should be able to apply for higher credit with cheaper interest rates. However
should you not need further credit after this first application please does not
open anymore accounts if not really necessary. Remember, you took these
steps solely so you can get a credit score in case you may need help in the
future.
 Having a bad credit history?
 You will be judged by you past credit history when applying for credit. A lot of
factors will be taken into consideration but do not lose hope there are
numerous companies willing to help you back on the route of rebuilding your
credit record. Applying for a bad credit loan to finish up some small accounts
can be a help. Just know that you will not be able to get a big loan and the
interest rate will also be high as a result of your past history. Pay all your

2. accounts on time, even if you pay regularly every month but are making late
payments it gets recorded on the credit bureaus and will lower your score.
 Do not get into the habit of making one loan after
the other once your credit has improved. Only apply
for any kind of credit when it is crucial. Try and live a
simpler lifestyle, you do not need the latest cell phones
or big screen TV sets etc, the older and cheaper (or
2nd
hand versions) work just as good. Be responsible
You can contact us at globalfinance@absamail.co.za