Loans Against Jewellery and Watches
Do I need a good credit score for an asset-backed loan?
The short answer
An asset-backed loan is still credit, so offering security does not remove the checks the law requires. A lender will generally verify your identity and carry out the credit and affordability assessments that apply to that type of agreement, which can include a credit bureau enquiry. The value of the asset is one factor, but it does not by itself decide whether an application is approved.
What credit checks mean for a secured loan
A credit check is a review of your credit record held by a registered credit bureau, showing existing accounts, repayment history and any judgments or defaults. An affordability assessment looks at your income, expenses and existing debt to judge whether you can meet the repayments. Security reduces the lender's risk, but you are still taking on a debt that must be repaid.How the National Credit Act applies
The National Credit Act requires credit providers to be registered and to follow prescribed steps before granting credit, including assessments aimed at preventing reckless lending. Knox Precious Metals (Pty) Ltd is a registered credit provider, NCR registration number NCRCP21466. Which assessments apply, and how detailed they are, depends on the type and size of the agreement. If an application is declined, you can generally ask the credit provider to tell you the main reason.What depends on Knox policy and your circumstances
Knox's credit policy sets out the checks it carries out, the information it needs and how it weighs the asset alongside your credit profile. Knox assesses the asset offered as security together with the checks required by the National Credit Act. Your existing commitments, income and repayment history can all affect the outcome, the amount offered and the terms. There is no guarantee of approval for any applicant.Your information and what to do next
Personal and credit information collected for the assessment is used for that purpose and must be handled in line with the Protection of Personal Information Act. Privacy questions and requests can be sent to Knox's Information Officer at compliance@knox.co.za or on 011 646 1919. If you are concerned about your credit record, you can request a copy of your report from a credit bureau before you apply. When you request an assessment, ask which checks will be done and what documents are needed. Bring your ID, proof of address (dated within the last 3 months), the bank details for the account the loan should be paid into and for the debit order, and any certificates, invoices or papers for the item. If you are married in community of property, your spouse must consent to the loan.How Knox handles this
Knox first assesses whether the asset qualifies as security. If it does, Knox verifies your identity and completes the credit and affordability assessments required by law for the proposed agreement, using the information and consents you provide. Knox then confirms whether it can offer a loan and, if so, sets out the proposed loan amount, interest, fees, term and repayment conditions in a pre-agreement quotation before you decide whether to proceed.
Ready for the next step?
Speak to the Knox team about your situation. They will confirm current pricing, availability and requirements before you decide.
