A Guide: Consumer Credit

All credit agreements (with the exception of mortgages) are now subject to ‘creditworthiness’ requirements. The Act requires creditors to assess your creditworthiness before concluding a credit agreement and/or before significantly increasing the amount of credit to be provided under an existing agreement. Creditworthiness simply refers to your ability to pay back debt in a timely manner

There is no prescribed method of assessing creditworthiness but this assessment must be based on sufficient information obtained from the borrower, in respect of income, outgoings and personal circumstances.