What happens when you apply for credit
From your side an application is a form. From the lender’s side it is five distinct checks, each of which can stop the process — and knowing what each is looking for tells you where yours is likely to fail.
Identity is verified against the national population register. Your details must match what Home Affairs holds, not what your document shows.
Income is verified from your bank statements, looking for a regular deposit from a consistent payer. A payslip supports this but rarely replaces it.
A credit bureau is queried — a legal requirement, not an option — and the enquiry is recorded against your record whether or not you proceed.
Affordability is calculated: verified income, less statutory deductions, less prescribed minimum living expenses, less existing debt instalments. What remains must cover the new instalment.
Finally the lender applies its own scorecard, weighting all of the above according to its risk appetite. This is why the same application succeeds at one lender and fails at another.
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.