Smart Banking Guide

When you apply for credit, some of the other questions that may be asked are:

• How long have you lived at your present address?
• How long did you live at your previous address?
• How long have you been in your present job?
• The name and address of your nearest relative who doesn’t live with you.

People who move around a lot are perceived to be less reliable and the credit granter has to decide whether you are the kind of customer they want. Are you likely to be stable, reliable and financially responsible?

The credit granter will want details about your income and may ask for a reference person at your place of employment. They will usually call your employer to confirm that you do work there. Your employer should never give details of your wages/salary over the phone even if asked. If you have a bank account, the credit granter may ask your bank for a reference directly. This will usually be a grade (from A to H), as well as information about RD cheques or other breaches of conduct you may have committed.

In most instances an application is only approved after a few days although some credit grantors are prepared to process an application whilst you wait. The credit bureau report on you will be considered in conjunction with the company’s own credit rules and a decision will be made whether to grant you credit – and what your limit will be. As they are generally reliant on telephone lines to phone or dial in to the credit bureau or to check your references, this may take a while.

Whilst credit grantors have to be stringent about who they grant credit to, they are providing more and more facilities to people from the lower income groups. Some of the forms you may fill in actually ask you to specify the nature of your dwelling, whether it is a permanent structure or a temporary one, and if temporary, whether it is constructed from wood/tin/plastic …

So What’s available?

I am assuming that home loans are not an immediate consideration and I will only be looking superficially at car finance as the principles involved are similar to any ordinary Finance House credit arrangement.

What follows is a general list of the most common credit arrangements available for retail purchases with broad explanation of each and what it entails for you as a customer. There will be different conditions applicable to each, depending on the type of goods/store, so you should always read the fine print on the application form and ensure that you understand the terms under which you are granted credit.

What Should I Take?

Given the nature of the questions on the forms, you should ensure you take the following with you:

* Your employer’s name address and phone number as well as the name of the Personnel officer or your immediate boss

* Your ID document (ID or Passport)

* Your marriage certificate if you are married

* The account numbers and balance details of any other accounts you hold

* Your bank account number

* Your last pay slip

* Account numbers and final settlement date of any previous HP agreements

* The initial deposit you intend putting dawn on the goads. (This can be a cheque or cash)