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5 Easy ways to improve your credit score

Do you live under the shadow of a poor credit score? At Libertine Consultants, we know what a hassle it can be to secure credit or even do something as simple as upgrade your cell phone if there is a blight on your credit history. Today we take a look at a few simple ways in which you can improve your credit rating.

date: 08/02/2017Author:

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.

Stay put

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.

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Call +27 (21) 949 2211 for advice on debt in Cape Town and rest of South Africa