If you’re opting to buy a car on monthly instalments, you’re not alone. Few new or used car buyers can purchase vehicles in one lump sum. Whether you’re searching for cars with instalments under R2 000 or have a bigger monthly budget, we want to help you get your ducks in a row.
Before you apply for car finance online, we urge you to continue reading to understand your credit profile. You may be Googling ‘How to check my credit score’ before the banks do their checks, or perhaps you’re trying to discover how your past financial history has affected your credit score.
At Weelee, we want to empower you with the answers to all your credit score queries before you apply for car finance.
Let’s get to it:
Credit Score vs. Credit Profile
Before you ask, ‘How to check my credit score?’ it’s crucial to understand the difference between a credit score and a credit profile.
A credit score is a numerical representation of your creditworthiness, typically ranging from 300 to 850. It is calculated based on factors like payment history, credit utilisation, length of credit history, new credit inquiries, and types of credit in use. Lenders use this score to assess the risk of lending to you.
In contrast, a credit profile (or credit report) is a comprehensive record of your credit history. It includes detailed information such as:
- Personal identification details
- Credit accounts and their statuses
- Public records like bankruptcies
- Inquiries made by lenders
While the credit score provides a snapshot of your credit health, the credit profile offers an in-depth view of your past and present financial behaviour.
How to check my credit score
Regularly reviewing your credit information is essential for maintaining financial health. In South Africa, several platforms offer a free credit score check:
- TransUnion: Provides comprehensive credit reports and scores.
- Experian App: Allows you to monitor your credit score and report on the go.
- ClearScore: Offers free access to your credit score, report, and personalised financial product recommendations.
Regular monitoring helps you identify discrepancies and take corrective actions promptly.
The impact of multiple financing inquiries
When shopping for car finance, it’s common to approach multiple lenders to secure the best terms.
We advise you to be cautious about this, as each application and inquiry into your credit profile can temporarily lower your credit score.
Credit scoring models often treat multiple inquiries within a short period as a single inquiry, recognising that consumers are rate shopping. To minimise potential negative impacts:
- Conduct all financing inquiries within a limited timeframe (typically 14 to 45 days, depending on the scoring model).
- Limit the number of applications to necessary lenders.
- Be strategic about your applications to preserve your credit score.
- Apply for car finance online through a single platform like Weelee by clicking the ‘Quick finance’ button next to your desired car. We’ll then connect you with the best price for vehicle financing.
What factors affect your credit score?
Several elements influence your credit score rating:
- Payment History: Consistently making payments on time boosts your score.
- Credit Utilisation: Maintaining a low balance relative to your credit limit is beneficial.
- Length of Credit History: A more extended credit history can positively impact your score, for example, owning a credit card and making on-time payments for several years before financing a car.
- New Credit: Opening multiple new accounts quickly can be detrimental.
- Credit Mix: A diverse range of credit types (e.g., credit cards and mortgages) can favourably affect your score.
How to apply for car finance online with Weelee
Weelee offers a streamlined process for securing car finance:
- Browse Available Vehicles: Explore a wide selection of low-mileage, quality cars with transparent service histories and independent condition reports online or visit Weelee Centurion.
- Select Your Desired Car: Choose a vehicle that fits your budget and requirements.
- Apply for Finance: Complete the online application form in as little as 90 seconds, providing necessary personal and financial information.
- Await Approval: Weelee collaborates with reputable financial institutions to offer competitive finance options.
- Finalize the Purchase: Upon approval, review the terms, sign the agreement, and drive away in your dream car.
Why choose Weelee for vehicle financing?
- Flexible Finance Options: Weelee offers tailored solutions to meet diverse financial needs.
- Independent Condition Reports: Know the car you desire has been backed by trustworthy inspections before being handed over.
- Transparency and Service History: Access to comprehensive service records for informed decision-making.
- Positive Reviews: Customer testimonials offer honest appraisals of Weelee’s vehicle sales process. Read independent reviews on Hellopeter.
Understand your credit & apply for vehicle financing with confidence
Knowing your credit profile makes a huge difference in creating realistic expectations when applying for vehicle finance. Weelee’s transparent and customer-centric approach further simplifies the car financing process.
What are you waiting for? Head on over to Weelee Centurion to find the car of your dreams.