A credit limit reflects an available facility, while a spending budget reflects what your household can repay. Keep those calculations separate.
What to check
- Income
- essential costs and existing commitments
Ask for the amount actually paid out, every required payment and its due date. Put two quotes on the same basis before choosing.
A decision to avoid
Treating unused credit as spare income.
A calculation you can check
Illustration only: cash received R2 000; three payments of R750; a separate required charge of R50. Total paid = 3 × R750 + R50 = R2 300. Difference from cash received = R2 300 − R2 000 = R300. This difference is not an annual interest rate. Include the charge only if it is outside the three payments; do not count it twice.
Questions about this decision
What should I check first?
A credit limit reflects an available facility, while a spending budget reflects what your household can repay. Keep those calculations separate.
Which information do I need for this decision?
Income, essential costs and existing commitments.
Which mistake should I avoid here?
Treating unused credit as spare income.
How do I check income?
Locate the actual dated record for Income. Compare it with the other records in this checklist; ask the organisation responsible for any unexplained difference.
How do I check essential costs and existing commitments?
Locate the actual dated record for essential costs and existing commitments. Compare it with the other records in this checklist; ask the organisation responsible for any unexplained difference.
What should I do if a required detail is missing?
Mark it as unresolved. Ask for that precise detail before choosing; do not substitute an advertised example for your own document.
What is the next practical step?
Ask for the amount actually paid out, every required payment and its due date. Put two quotes on the same basis before choosing.
How can I verify the explanation?
Use the documents listed above. Check quoted amounts and dates in the original record; use the official reference links for the organisation’s guidance.
