The Consumer undertakes to notify the Credit provider, immediately should any of the following changes occur (Failure to inform the Credit provider entitles the Credit Provider to terminate the agreement and claim the full Balance):
The Consumer will not without prior notification to and consent of the Credit Provider change his/her debiting banking account or divert his/her salary to another bank account or suspend the Credit Providers payments. The Credit Provider reserves the right to per sue charges and investigative action should the Consumer breach the undertaking.
If the Consumer is in default under the Credit Agreement the Consumer will be responsible for the payment of all default administration charges, in the respect of each and every letter of demand, which is R29.00 plus VAT of 14% per letter and the necessary expenses incurred in delivering such letter.
The Credit Provider shall have the right to, without prejudice to any other of its rights and upon written notice to the Consumer, terminate the Credit Agreement and to claim the unpaid balance of the debt, the unpaid interest charges and all other fees and charges payable by the Consumer under circumstances where:
A certificate signed by a nominate designated manager of the Credit Provider, shall be prima Facie Proof of the Consumer's indebtedness in terms of the credit Agreement. The authority of the manager need to be proven by the Credit Provider.
We do assist clients with more than 1 active loan as long as their current loan with our providers is up to date. After you made 1 or more installments depending on which credit provider we deal with we can offer second and third loans depending you are not in arrears, all other loans will be put through the same criteria as the first loan to insure that affordability and all other NCR (National Credit Regulator) rules are met.
The codes of practice/policies we enforce are strictly according to the rules and regulation according to the National credit Regulators of South Africa NCR (National Credit Regulator) and the national credit act. ("NCR or National Credit Regulator is the regulator under the National Credit Act 34 of 2005" (the Act).
According to the NCR ("NCR or National Credit Regulator is the regulator under the National Credit Act 34 of 2005" (the Act) the fees and annual percentage rates for Short Term Loans in South Africa is 5 % monthly or 60 % per annum. Please see the National Credit Regulations, page 43, Part C, "Maximum prescribed interest and initiation fees" section Short Term Credit Transaction.
The financial service providers that we work with always states what the cost of the loan that you applied for will be. Our short term service providers have an annual interest rate of 32.10% to 60% APR. Included in this is their R57 per month service fee that helps cover the cost of the administration of your account and an initiation fee which all fall in line with the NCA. All of this is shown up front so you can judge the cost of a loan before you accept your quotation. All fees include 14% VAT.
EZI Finance acts as a loan lead provider, and not as a lender or agent of any lending institution. EZI therefore do not have any preferred lender or receives any form of remuneration from the lenders or agents of these lenders. EZI therefore do charge a once-off loan lead providers initiation fee. This fee has nothing to do with the loan itself.
This fee is debited by means of a NAEDO, by PAYM8, a registered debiting authority. This fee is only debited on the consumers upcoming pay date, providing the application it is not within 3 days from pay day. Once this service was rendered, as in your loan application forwarded by email to the brokers, this fee is non-refundable or disputable and is not subject to the outcome of the application as such.
"Confidentiality Notice: the information contained in this email and any attachments may be legally privileged and confidential. If you are not an intended recipient, you are hereby notified that any dissemination, distribution, or copying of this e-mail is strictly prohibited. If you have received this e-mail in error, please notify the sender and permanently delete the e-mail and any attachments immediately. You should not retain, copy or use this e-mail or any attachments for any purpose, nor disclose all or any part of the contents to any other person." Disclaimer: Information contained in this email is intended as a general reference for loan seekers. It is made available on the understanding that EZI Finance, as a result of providing this information, is not engaged in providing professional advice. While EZI Finance will make every reasonable effort to maintain current and accurate information, users should be aware that EZI Finance accepts no responsibility for the accuracy or completeness of any material contained in this email and website, and recommends that users obtain specific financial advice to their own particular needs and requirements with respect to its use. The material in this email may include views or recommendations of third parties, which do not necessarily reflect the views of EZI Finance, or indicate its commitment to a particular course of action. Links to other websites are inserted for convenience and do not constitute endorsement of material at those sites, or any associated organisation, product or service. The listing of a person or organisation in any part of this website in no way implies any form of endorsement by EZI Finance of the products or services provided by that person or organisation. EZI Finance is not a financial advisor, and advice are for information purposes only. EZI Finance is a loan lead provider and not a lender or loan agent, even though we do our best to assist in finding you a loan, we cannot guarantee your loan requirements will be met, or a loan will be granted. Also please refer to the terms and conditions as found on the website of www.ezifinance.co.za and attached documentation
We at EZI Finance work strictly according to the NCR rules and regulations. If you fail to make a payment or do not have funds available in your bank account for debit order agreement according to the contact without previous agreement with our company, additional cost will be charged.
If your debit order does not go through on agreed date, the responsibility will be yours to contact EZI Finance per email and make arrangements for payment. Unfortunately your bank will also charge you a service fee for the unpaid service, but this has nothing to do with EZI Finance and the person involved.
If you fail to contact EZI Finance via email to make payment arrangements you will be liable for additional costs, which will be added according to the terms as per the Debit Order Mandate, and be debited the following month.
If the debit was paid successfully and you the client reversed the payment, without prior arrangement with EZI Finance, resulting in a non-payment, you will be held liable for additional costs, which will be added according to the terms as per the Debit Order Mandate, and be debited the following month.
Continued non-payment of the once-off fee might result in we forwarding your information to a registered debt collector. This will also result in a default against your name and damages your credit record. We really do not want to go that route so please make sure that there are funds available in your bank account on the date agreed on the contract with EZI Finance and the client.
All non-payment communication must be via email to: support@ezifinance.co.za
If you are interested in a personal loan or consolidation loan, or increasing your existing loan; your credit score could be your friend or your worst enemy.
But what is your credit score, as kept by the main credit reporting agencies: Trans Union, Experian and Compuscan? Credit score is a 3-diget number which is generated by comparing data that mainly comprises of 5 major elements, namely: Payment History 35%; Total Amount Owing 30%; Length of credit history 15%; Types of credit 10%; New credit 10%.
1. Pay on time, every time
By not paying on time can penalize your credit score by as much as 35%. Every time a payment is late, your credit score will decrease. The more recent late payments are worse to your score than older once, therefore by paying loans and other accounts, on-time will be a good indication of your changed habits. If you cannot make the full loan payment, pay a smaller amount on time and make arrangements for the rest, but make it before the due date.
2. Pay your credit cards
By making at least the minimum repayments on time, every time will be good for your credit score; it shows you can manage your debt. By making more than the minimum payment is even better, as it shows your desire to lower your loan debt.
3. Avoid the courts
Avoid by any means to end up in court due to non-loan/debt payments, as that will severely hamper your chances of future credit. Rather try and negotiate to skip a payment, before the payment due date or lower payments till such time you can continue with regular payments and repaying any arrears. Even if you skipped a payment, try and make a payment on your next payday, as that will help keeping you from the courts.
4. Too much debt
Debt of more than 30% of your net income will negatively affect your credit score. Minimise the amount of loans and credit cards to your name. Try not to use more than 50% of your credit limit on your credit card, as that affect you score more. While you are paying off a loan try and avoid taking on more credit, at least till such time you can afford to make larger repayments.
5. Debt Consolidation
Avoid having lots of small loans and accounts where you have credit facilities. Rather consolidate all the small debt into one larger loan account. You save on administration and other fees with only this one loan account. The consolidation loan is not paid out to you, instead all your smaller loans are paid with the help of the consolidation agent. If you have too many unpaids and your loan affordability is not met, then the loan will not be granted. If the awarded consolidation loan amount is more than the sum of the smaller loans (to be consolidated) the rest is paid to you as a personal loan. Consolidation is not the same as Debt Counselling, as discussed later.
6. Debt ratio
Debt to income ratio is the ratio of your monthly net income compared to total monthly debt repayments. 30% or less is considered as an excellent ratio by most lenders. A ratio of 40% and below should see you qualify for credit without problem, if all the other requirements are met.
Another ratio to consider is debt ratio. That is the ratio of debt to your credit limit. Lenders prefer the difference between what you owe and your credit limit to be as big as possible. The bigger the gap, the better the loan amount.Ways to prepare you for a loan application is to first increase these ratios in your favour, by paying off accounts and loans with are nearly paid up. It is also good to first pay those loans and accounts with large interest rates, and accounts where your debt is very close to your credit limit.
7. Close unused lines of credit
Close accounts that are no longer in use, for instance clothing accounts you no longer use or require. The same goes for disused credit cards, especially when applying for large loans.
8. Minimising the amount of credit checks done on you
When you seek a loan, do not apply with every lender and agent to be found on the net or back office, not even every bank, small or large!! Every time you apply, and a credit check is done on you, you lose points from your credit score.
9. Minimise money movement
Excessive movement of funds between accounts and banks can be seen a s form of money laundering, which will work against your loan chances.
10. Credit Cards
Too many credit cards, with extremely high limits are not good for a loan application. If the bulk of your debt is made up of credit card debt, your credit score will be lower. Also better to have 2 credit cards with each less than 50% debt, than one card which is maxed out.
But having credit card with an excellent credit history can sometimes count in your favour.
11. Credit history
Having a bad credit history is without saying, bad for obtaining a larger or another loan. The same goes for having no credit history, or a very short credit history. Lenders have no history to go by in order to know if you will repay your loan. If you are one of the lucky people without debt, but require a loan, you will find it difficult to obtain a loan. Start by opening a clothing account and a low interest credit card. The secret now is to repay the outstanding amounts before the due date. This way you start to build a reputable credit history and improving your credit score.
12. Your partner's rating
Having a husband or wife with a lousy credit score is going to affect your score too, this is truer for those with joint accounts and those married in community of property.
13. What if you cannot make repayments?
This happens to most of us, but it should not be the end of the world as far as your credit score goes. Before the due date of the next loan or instalment payment, contact the lender or business who needs being paid, and arrange a lower or part payment or even a no payment. By avoiding them to contact you, you will stay out of the courts if it drags on for even longer.
14. Credit repair agencies
Instead of using an agent to clean your credit history, first attempt to do it yourself, start off by paying arrears and paying on time. Once you are serious of clearing your debt, visit www.credithealth.co.za for more guided help in clearing your name.
15. Obtain a copy of your credit report
Before you apply of a large loan or a consolidation loan and whenever you feel the need to, obtain a credit report. It is not uncommon for your credit report to contain errors. Look for incorrect information, or even loans and other accounts to your name that were never yours. Look for defaults or judgments that still appear on your record, even though you paid. If you still have proof of payment you can contact the credit provider with this proof or a court order stating the recession of judgement.
But by settling the outstanding debt in full, you could request the credit provider to authorize the credit bureau to clear your name, make sure this is done in writing and you have proof thereof. However if judgement was passed, an attorney may be needed to appear in court and have the judgement set aside on your behalf. The court order with the prescribed application must be forwarded to the credit bureau it is not automatically removed.
For a copy of your credit report contact:
www.mytransunion.co.za
www.experian.co.za
www.compuscan.co.za
16. Debt Counselling
If you consider none of the above would help your current or foreseen future and the financial stress is too much to handle, you could consider Debt Counselling. Debt Counselling is preceded by Debt Review. The review is to determine if you qualify for counselling. Under Debt Counselling your monthly loan and other debt repayments are lowered to a more manageable payment. While under counselling you are not allowed to take on more debt, but then your debtor are not allowed to harass you for higher payment. EZI Finance is not a Debt Counsellor; see the NCR website for registered counsellors in our area. Alternatively, contact EZI Finance and we can refer you to a NCR registered Debt Counsellor (free service to either)
17. Parting Thoughts
Financial stress is something many South Africans have in the current economic climate. With stress come medical and psychological complications far more than could be imagined. Before you consider taking on more debt, know that credit cost money, and money is something you currently might not have. If you need to follow the above mentioned credit score hints in order to obtain a loan to purchase a non-essential item, then EZI Finance cautions you. If obtaining credit is for a life essential reason, we belief the above pointers will be of good value to you.
This information is intended as a general reference for loan seekers. It is made available on the understanding that EZI Finance, as a result of providing this information, is not engaged in providing professional advice. While EZI Finance will make every reasonable effort to maintain current and accurate information, users should be aware that EZI Finance accepts no responsibility for the accuracy or completeness of any material contained in this article and recommends that users obtain specific financial advice to their own particular needs and requirements with respect to its use. The material in this article may include views or recommendations of third parties, which do not necessarily reflect the views of EZI Finance, or indicate its commitment to a particular course of action. Links to other websites are inserted for convenience and do not constitute endorsement of material at those sites, or any associated organisation, product or service. The listing of a person or organisation in any part of this website in no way implies any form of endorsement by EZI Finance of the products or services provided by that person or organisation.
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