Issuance of dud cheques affects your chances of securing a credit facility – BoG warns public
The Central Bank has cautioned the public against the practice of issuing dud cheques.
According to the Central Bank, issuance of dud cheques affects the issuer’s chances of securing credit facilities from financial institutions in the country.
“Issuance of dud cheques adversely affects your credit report and your chances of securing a credit facility with any financial institution,” said the BoG.
A dud cheque is a cheque which has been dishonoured by a Bank/SDI on which it is drawn, for the reason that the account holder who issued the cheque has inadequate or insufficient funds in his/her account to pay the amount specified on the cheque.
The BoG made the assertion in its Financial Literacy educating the public on improving their creditworthiness so as to be able to secure loans or credit facilities from financial institutions in the country.
According to the BoG, a borrower’s credit report contains his or her credit history which outlines current and past loans, the institutions from which the loan was taken, and how the loans are being repaid or have been paid.
The BoG in its financial literacy education asserts that borrowers need to pay loans on time to maintain a good credit history.
This is because, the borrowers credit history shows how the borrower managed the repayment of past loans including the timelines of repayment.
“A weak credit history may affect your chances of getting new loans from any financial institution,” the BoG added.
