Credit Plus Report

1. The primary reason is to avoid applying for a loan at the wrong bank. Different banks have different approval criteria and risk tolerance levels. It could be you are not in the right income and DSR range, you have insufficient assets and savings, you do not have an existing relationship with the bank or it can be as simple as the timing of your application.

2. It is better to know your acceptance chances before submitting an application. Getting rejected by a bank costs your time and effort and affects your emotions. It will also cause a “Hard Inquiry” to show up on your credit report. A “Hard Enquiry” occurs when a bank has asked to look at your credit report to determine how much risk you pose as a borrower. More than four “hard inquiries” over the past 12 months could make it look like you are desperate for loans and credit cards that you may not be able to pay back.

3. If you have experienced rejection from credit card and loan applications before, instead of going directly to another bank, it is advisable to take time to understand why you were declined in the first place. Once you understand the problem, then you can work on improving your financial health and eventually start planning to get your loan approved.

4. Credit Plus can give you an indication of which loans or credit card balances are holding back your credit scores, sometimes taking out a consolidation loan can result in a lower credit utilisation ratio. It is also a good way to convert high-interest credit card debt to less-expensive instalment debts.