What is the credit process?

The credit process differs according to the type of credit you wish you apply for.

The following steps map out the process involved with purchasing an item on credit, applying for a loan, or extending the credit limit on your store card and the actions taken by credit providers and credit bureaus.

1. A consumer will apply for credit from a credit provider

2. The credit provider will begin to process the consumer’s application, which will consist of sending an enquiry to various credit bureaus.

3. The credit bureau will respond to the enquiry and will issue a report to the credit provider

4. The credit provider will assess the report and decide whether the application is risk free and if it should be accepted or declined.

5. In the event that the credit provider decides to grant the consumer credit, the consumer credit provider will be used in order to determine the interest rate the consume qualifies for and the deposit that needs to be put down in order to borrow the credit, if any.

6. The credit provider will notify the consumer of the terms of business. If the credit provider declines the consumers application they may imply that the credit bureau advised not to take on the agreement, instead of stating the real reason which may be that the credit provider considered the consumer as a bad risk candidate. However, another credit provider may think differently and grant the consumer the credit they need.

7. The Ombud will ensure that both the credit provides and the consumers play fair.

For more assistance with the credit process, or any questions with regards to sorting out your financial situation, specifically solving your debt contact DebtBusters on 0869990606

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