C Financial Terms

Clearance Certificate

Legal

A document issued by a debt counsellor confirming that a consumer has completed all debt review repayments and is no longer under debt review. The cle...

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Collateral

Loans

An asset (such as a car or property) pledged as security for a loan. If you fail to repay, the lender can seize the collateral to recover their money....

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Compound Interest

General

Interest calculated on both the initial principal and the accumulated interest from previous periods. When saving, compound interest works in your fav...

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Credit Agreement

Legal

A legally binding contract between a lender and borrower that outlines the loan amount, interest rate, repayment terms, fees, and both parties' rights...

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Credit Bureau

Credit

An organisation that collects and maintains consumer credit information. South Africa's main credit bureaus are TransUnion, Experian, Compuscan (now X...

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Credit Impaired

Credit

A status indicating that a consumer has a negative credit record due to defaults, judgments, or being under debt review. Being credit impaired makes i...

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Credit Life Insurance

Insurance

Insurance that covers your outstanding loan balance in the event of death, disability, or retrenchment. Under the National Credit Act, lenders may req...

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Credit Report

Credit

A detailed record of your credit history held by credit bureaus. It includes your personal information, credit accounts, payment history, defaults, ju...

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Credit Score

Credit

A numerical rating (typically 0-999 in South Africa) that represents your creditworthiness based on your credit history. A higher score means you are ...

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Credit Utilisation Ratio

Credit

The percentage of your available credit that you are currently using. For example, if you have a R10,000 credit limit and owe R3,000, your credit util...

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