How to read a credit agreement
Credit agreements are long, and almost nobody reads them end to end. Reading seven specific things takes about five minutes and covers nearly everything that will actually affect you.
The legal entity granting the credit, and its NCRCP number. This is the company you have an agreement with — often not the brand on the letterhead — and it is the name to check against the register.
The total cost of credit, and the instalment. Confirm both match the quote you accepted. If they differ, do not sign until it is explained.
The collection date and method. Check the date falls after your pay date, and that the amount matches the instalment.
The credit life insurance clause: whether cover is compulsory, what the premium is, what it covers, and whether you may substitute your own policy.
The early settlement clause, confirming your right to settle at any time and how a settlement quote is obtained.
The default clause, setting out what happens if you miss a payment and what charges apply.
The complaints clause, naming the internal process and the external ombud scheme. You will be glad of this if you ever need it.
Related
Sources and last checked
- National Credit Act 34 of 2005 and its regulations — Government, as at 10 August 2026.
Page last checked 10 August 2026. Statutory caps and lender terms change — confirm anything you intend to rely on with the provider or the National Credit Regulator. Found something wrong? Tell us and we will correct it.