Improve your chances of getting credit

● Self-employed people can improve their chances of getting home or vehicle finance by following a few tips, Geoff Lee, managing executive of home loans at Absa’s retail banking and banking division, says.

• Buy within your means. If your income levels fluctuate, be realistic about what you can afford in months with lower income.

• Draw up a detailed budget, review your bank statements and make notes of your commitments. Consider all expenses, regardless of their size and include those due on an annual or quarterly basis.

• Always be realistic and honest. Not being able to afford a loan has far worse consequences than the embarrassment of being declined upfront.

• Use the tools available on your banking website and obtain advice from an expert.

• Consider the impact of increasing interest rates and whether you will be able to afford the instalment in the event of an interest rate hike.

• Check your credit record. When it comes to managing your finances, your credit status and your debt, it’s best to make sure you know what’s going on in your credit report. Absa provides a free credit check for its customers on WhatsApp Chat banking.

• Manage your spending and personal credit accounts well — do not miss payments or go into arrears.