Passing your ITC check is one of the most important steps in applying for credit successfully – and for many car buyers, it’s also the most difficult.
If you’ve been told that your ITC check wasn’t successful, or that you will need to pass one soon, you may be wondering what these three letters mean. Here is the low-down on ITC, as well as some advice for South Africans who need a car but don’t have a perfect credit score.
What is ITC anyway?
ITC is the former name of TransUnion, one of South Africa’s biggest credit bureaus. Although the name ITC doesn’t exist anymore, it still causes millions of consumers a lot of anxiety every time they apply for credit – but why is that?
It’s simple: without a clean credit record, your financing application will probably be rejected – and credit bureaus are the record keepers.
How an ITC check works
Whenever you apply for credit from a bank or financial institution, they run an ITC check as part of the application process. TransUnion provides the bank with a copy of your latest credit record, which contains the following information about you:
- Your name, ID number and last known address
- A record of your payment habits over the past 24 months
- Any judgements or court payment orders against your name
- Trace alerts – red flags which inform your creditors when your address changes
As you can see, your credit record provides banks and other institutions with a lot of detailed information about your behaviour as a consumer. If you find yourself with late payments, skipped payments, or judgements on your credit record, your chances of being approved for financing from a bank are very slim – if not impossible.
I didn’t pass my ITC check – now what?
If you’ve had your credit application rejected because of a less-than-perfect ITC record, you have several options.
In order to clear your credit record, you’ll have to pay off any debts you may have and get the judgements removed from your record. You will also have to make all your credit card and other payments on time for 24 months to ensure a clean credit record. For many South Africans, this may sound almost impossible.
Want to buy a vehicle and avoid the ITC check altogether?
If you’d like to learn more about our rent-to-buy system that will let you buy the car you want without a credit check, contact us today. Our team is on hand to advise you at every step of the process.