FAQ

General FAQs

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What does a payment holiday mean?

A payment holiday is an agreement between you and your lender allowing you to temporarily stop or reduce your monthly repayments on an existing credit agreement. Lenders have different approaches to payment holidays so please speak to your lender about what’s available to you, the implications, as well how you should go about applying.

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What payments qualify for payment holidays

Lenders have different approaches to payment holidays ranging from reduced monthly payments, deferred full payments through to extending the number of installments (the term) on the original credit agreement. Please speak to your lender about their payment holiday approach, which of your payments qualify, the implications for you as well as how you go about applying.

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How long do payment holidays last for?

Lenders have different approaches to payment holidays. Please speak to your lender about their payment holiday approach, including the duration options on offer.

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How do I apply for a payment holiday?

Lenders have different approaches to payment holidays. Please speak to your lender for more information on the application process that you should follow.

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What does a payment holiday mean for my credit score?

A payment holiday is intended to assist consumers in preventing them from defaulting. Should you be granted a payment holiday, your lender will provide the credit bureau with the appropriate information to correctly identify your payment holidays against your specific accounts. This information is taken into consideration when reviewing your credit score. It is important to note that lenders make lending decisions on additional assessments over and above your credit score when granting new credit or extending credit limits.

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How will a payment holiday reflect on my credit report?

As long as a deferred payment date (which will be future date) is supplied by your lender to the credit bureau, your account will reflect as updated until such time the payment becomes due and payable. The deferred payment date will reflect on your credit report for each account that is deferred or where the term is extended. Please obtain your latest credit report from transunion.co.za

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What should I do if I can’t honour my payments?

You should immediately contact your lender to make an alternate arrangement with them. Proactively managing your obligations to lenders will allow you improve and sustain your overall financial health.

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What happens if I don’t make the full payment, but pay a portion of it?

In order for the reduced payments to not reflect negatively on your credit report, you need to make sure that you follow the proper application process with your specific lender. The lender will then submit this information to the bureau to update on your profile showing that you are on a payment holiday.

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Can I claim against insurance if I am unable to make my installments?

Most lenders require you to take out credit life insurance when you apply for credit. Check your specific insurance policy to see if your specific policy allows you to claim.

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What happens if I have a dispute during the lockdown period?

The credit bureau dispute teams continue to operate and you can still log your dispute online. Disputes will still be managed within the current 20 business day resolution timeline, however due to not all businesses operating during the lockdown this may allow for updates past this period.

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Can I still access my credit report during the lockdown period?

During this Covid-19 lockdown, all credit bureaus are providing consumers with free access to their credit report. Please access your free annual credit report.

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How can I protect my credit health?

We understand that you may be facing some tough financial choices right now. We encourage you to pay what you can to avoid late payments on your credit report. If you can’t make minimum payments, we recommend you talk with your lenders to find out if they’re offering any assistance. Please access your free annual credit report, so that you can better under your current financial health.

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What is a Credit Report?

Your credit report is a record of your credit activity and credit history. It includes the names of companies that have extended you credit and/or loans, as well as the credit limits and loan amounts. Your payment history is also part of this record and can show how you positively manage your accounts. If you have delinquent accounts, are under debt counseling or administration, or you have been sequestrated, these can also be found in your credit report.

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What does COVID-19 mean for my credit score and credit report?

We understand that you may be facing some tough financial choices right now. We encourage you to pay what you can to avoid late payments on your credit report. If you can’t make minimum payments, we recommend you talk with your lender to find out if they’re offering any assistance. Please access your free annual credit report, so that you can better under your current financial health.

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What does the national lockdown mean for my credit score and credit report?

Banks and other financial institutions are classified as essential services and continue to operate during this period. Talk to your lender to understand what options they have available to assist you. TransUnion will also continue to provide consumers with their credit reports during this period to help you understand your financial position. Please access your free annual credit report, so that you can better under your current financial health.

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What does the corona virus mean for my credit score and credit report?

Just like your physical health, your financial health is key. Away try to pay what you can to avoid late payments on your credit report. If you can’t make minimum payments, we recommend you talk with your lenders to find out if they’re offering any assistance. Please access your free annual credit report, so that you can better under your current financial health.

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What should I do to protect my credit score during the lockdown?

We understand that this is a very uncertain time for everyone. You should however always try to pay what you can to avoid late payments on your credit report. If you can’t make minimum payments, we recommend you talk with your lender as soon as possible to find out if they’re offering any assistance and how that can benefit you. Please access your free annual credit report, so that you can better under your current financial health.

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I am worried that the Covid-19 lockdown is going to affect my ability to earn and income. What should I do to protect my credit score?

We understand that you may be facing some tough financial choices right now. We encourage you to pay what you can to avoid late payments on your credit report. If you can’t make minimum payments, we recommend you talk with your employer and your lender to find out if they’re offering any assistance. Most lenders also require you to take out credit life insurance when you apply for credit. Check you have insurance as well as what your specific policy allows you to claim for.

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