Saturday, November 23, 2024

Avoid issuing dud cheques, securing loans will be adversely affected – BoG

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The Bank of Ghana is cautioning customers of banks who issue dud cheques to desist from that since it adversely affects their credit report and chance of securing a credit facility with any financial institution.

The warning was captured as part of the Central Bank’s financial literacy programme dubbed “Improving Your Credit Worthiness”.

It is also part of efforts to help customers improve their worthiness to receive new credit from any financial institution.

The Central Bank also urged customers to pay their loan on time to maintain a good credit history.

It noted that this is because one’s credit history showed how they managed the repayment of their past loans including the timeliness of the payment, adding that, a weak credit history might affect one’s chances of getting new loans from any financial institution.

“You need to pay your loan on time to maintain a good credit history. This is because your credit history shows how you managed the repayment of your past loans including the timeliness of the payment. A weak credit history may affect your chances of getting new loans from any financial institution,” it said.

The Central Bank also stated that bank customers are entitled to a free credit report once a year.

“Your credit report will contain your credit history which outlines your current and past loans, the institutions you took the loans from and how you are paying or repaid the loans. Contact the credit bureaus to see your credit status. Do not wait until you need a loan,” it added.

It also noted that Retailers, Telcos, Fintech Service Providers, Student Loan Trust, Utility Companies and other credit providers etc. may share information on one’s indebtedness to them to Credit bureaus licensed by BoG.

These institutions will also obtain credit information about borrowers when deciding to offer them credit. This will however be done with their consent.

It reiterated that their consent was required before any authorised institution obtains access to their credit report or share their credit information.

The Central Bank however urged borrowers to submit a complaint to the credit bureau or their financial institution, if they dispute the content of their credit report.

The post Avoid issuing dud cheques, securing loans will be adversely affected – BoG appeared first on Ghanaian Times.

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