C Financial Terms

Clearance Certificate

Legal

The paper that says you're done. Your debt counsellor issues it when you've paid off all your restructured debt. It goes to the credit bureaus and upd...

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Collateral

Loans

An asset — usually your car or property — that you pledge to the lender as security. If you don't pay, they take it. That's why secured loans (backed ...

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Compound Interest

General

Interest on interest. When you save, it's your best friend — your money grows faster because the interest itself earns interest. When you borrow and d...

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Cooling-Off Period

Legal

After you sign a credit agreement, you've got five business days to change your mind and cancel it, no questions asked, no penalty. The law (Section 1...

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Cost of Living

General

How much money you need every month just to exist — rent, food, transport, electricity, data. In Johannesburg it's way higher than Durban or Cape Town...

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Credit Agreement

Legal

The contract between you and the lender — it spells out everything: the loan amount, the interest rate, when you need to pay it back, what fees they'l...

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Credit Bureau

Credit

These are organizations that keep track of your entire credit history — every loan you took, every payment you made or missed, every default or judgme...

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Credit Card

Credit

A credit card is you saying to the bank 'lend me money whenever I swipe, and I'll pay you back later.' You get a limit (say R20,000), you spend up to ...

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Credit Impaired

Credit

Your credit record is kak — you've defaulted, got a judgment, or you're under debt review. Banks see you as high-risk. New credit is tough to get. Som...

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Credit Life Insurance

Insurance

This insurance covers your loan if something bad happens — death, disability, retrenchment, illness. If you die, it pays off the outstanding balance s...

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Credit Limit

Credit

The maximum amount a lender says you can borrow on a credit card, store account, or overdraft. They set this based on what they think you can afford. ...

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Credit Profile

Credit

Your credit history lives at TransUnion, Experian, and Compuscan — it's basically a report card that shows every account you've ever opened, every pay...

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Credit Provider

Credit

Any business or person offering credit to people must be registered with the NCR. Banks, micro-lenders, shop accounts, and car finance companies all n...

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Credit Report

Credit

Your complete financial history, all recorded in one place. It shows who you've borrowed from, whether you paid on time, any defaults or judgments, an...

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Credit Score

Credit

Your financial reputation boiled down to a number between 0 and 999. The higher you go, the more likely lenders will approve you and give you a better...

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Credit Score Range

Credit

Your credit score is a number between 0 and 999 (on TransUnion) or 0 to 705 (on Experian) that basically rates your financial behaviour. Anything abov...

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Credit Utilisation Ratio

Credit

How much of your available credit you're using. Hit R10,000 limit, owe R3,000? That's 30%. Keep it under 30% and your credit score stays healthy. Go a...

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