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What are credit records & agreements?

What is a credit record?

This is a record of your financial history and how you have handled credit accounts. Including details of financial institutions who have extended you loans or credit, along with your credit limits and amounts.

How to keep a good credit record?

It takes time to build up a good credit record. Making all your card payments on time, avoiding defaults on loans, not filing for bankruptcy, or not having any court action taken against you for non-payment of debts all adds to a good credit history. Long years of managing your finances well helps build up a good repayment record, and, if you have a record of good repayment, a lender is more likely to offer you credit, and you may find they will also offer it at lower rates of interest.

Treat your credit record like a precious commodity that's hard to replace once you lose it. You need to protect it carefully as it will affect your chances of getting a loan / credit card application approved when you really need it. Credit can help you manage your financial affairs and your ability to fulfill your dreams, and managing your financial affairs well will help you improve your credit record.

What are credit agreements?

A credit agreement is a contract that outlines the terms of extending credit to customers. For example, the agreed interest rates, the time frame of loan and how it will be paid back. This agreement is legally binding. 

You need to know: 

  • How much will the monthly payments be and how long will you have to pay them?
  • Are there any other charges besides the interest?
  • What happens if you can't keep up the repayments?
  • Can you settle an agreement earlier without penalties?

Make sure that when you take up a loan / credit facility, that you fully understand the charges as well as the terms and conditions.