Know your rating
First things first – before you can improve your credit rating, you need to know what it is. South Africans are entitled to one free report per year after which additional reports can be attained at a small fee. This can be requested from any credit bureau.
TOP TIP: Would you like to know your credit rating? Visit the My Credit Score for a free report and breakdown of how your credit score was calculated.
Close unused lines of credit
Take a look at your monthly expenditures, cut down where you can and close down any unused lines of credit as a result thereof. E.g. if you’ll no longer be buying clothing on credit, close down those accounts.
Credit providers tend to take a look at your lifestyle to determine whether you’re a safe bet. You’re more likely to be seen as a safe investment if you’ve been in the same job and lived in the same area for a substantial amount of time.
Get all of your accounts in your name & keep POPs
If you have paid your debt off in a timely fashion over a number of years, chances are you can work towards a credit rating that could result in a more favourable interest rate. Make sure that all your bills are in your name, and keep proof of payment for each transaction to create a paper trail.
This point is particularly important for students who tend keep accounts in their parents’ name and make direct payments to their parents to cover the expense.
Pay a little more than you need to
Your credit card statement indicates a monthly minimum and due date. Paying a little more than the minimum each month will indicate to your bank that you are not in distress, which will secure your access to future credit.
These five guidelines should help you to improve your South African credit score. For more information on the topic or to learn more about debt management and how it can help you to manage mounting debt repayments, don’t hesitate to get in touchwith a Libertine Consultants representative.