Growth & Jobs | Credit checks help borrowers overcome financing challenges

Two borrowers who encountered unexpected problems with their credit histories have shared how taking steps to address the issues helped them access financing, underscoring the importance of understanding and monitoring credit reports before applying for loans.

Matthew Bourne and Novia Blair shared their experiences during a session hosted by the JN Foundation’s JN Financial Academy’s Smarter Credit Day workshop, held on October 15 as part of the global observance of Get Smart about Credit Day. This is an initiative of the American Bankers Association to promote greater awareness of credit management and responsible borrowing.

Bourne recounted how his plans to purchase a new motor vehicle were threatened when he discovered that his credit report showed more than $2 million in credit card discrepancies attached to cards that he no longer used and did not realise were still associated with his credit history.

The discovery came when he applied for an auto loan through JN and learned that his credit profile was weaker than he had anticipated.

“I don’t think I knew very much because I’d not previously try to get a loan,” Bourne said, describing the discovery of his credit challenges as “a punch to the gut”.

He explained that, with guidance from his JN loan officer, he filed a dispute with the credit bureau and worked with the relevant financial institution to have the outdated credit card information removed from his report.

The process required persistence, but he said the assistance he received helped him navigate the challenge and ultimately secure financing for his new vehicle.

Bourne said the guidance also helped him understand how his existing credit commitments could affect his borrowing options. Following advice from his loan representative, he cancelled a credit card he was actively using. This,he said, not only helped him qualify for the vehicle loan but also improved the terms under which it was granted.

Blair, meanwhile, reflected on her experience of discovering that a loan she had repaid approximately a year earlier was still appearing on her credit report when she sought financing for a major purchase.

With assistance from a representative of the financial institution, she obtained a letter confirming that the loan had been paid off. The documentation helped resolve the issue and improve her position in negotiating financing for the purchase.

Blair said the experience reinforced the importance of protecting one’s credit history and ensuring that information reported by financial institutions accurately reflects one’s obligations.

more proactive approach

Karon Lewis, business relationship and sales manager at JN Bank, who moderated the hybrid workshop, said Bourne’s experience underscored the importance of seeking professional guidance and addressing credit-report discrepancies urgently to ensure that the information recorded is accurate.

Both participants encouraged Jamaicans to take a more proactive approach to credit management, rather than waiting until they need a loan to review their financial standing. Bourne urged consumers to seek advice from financial professionals and allow them to provide guidance through the borrowing process, while Blair encouraged borrowers to preserve their creditworthiness, monitor their credit profiles, and spend only when necessary.

She also shared how the JN Financial Academy’s Smarter Credit course had helped deepen her understanding of credit. Although she had initially fallen behind in completing the online modules, she eventually completed them in one night, recognising the value of the information for herself, her family and others.

“It was a great experience,” she said, noting that the course reinforced some of what she already knew, while introducing her to new information about credit management.

Commenting on the importance of being intentional about one’s financial education, Rose Miller, financial education consultant with the JN Foundation, pointed out that the testimonials reinforced the importance of checking credit reports, at least on an annual basis, disputing inaccurate information and understanding how existing credit facilities and repayment histories can affect future borrowing.

Representatives of The CRIF Information Bureau Jamaica Limited and EveryData Jamaica Ltd. partnered with the academy to deliver the workshop