Know where you’re starting from
To get to grips with your credit rating, you first have to know what it is. As a South African resident, you are to one free credit report per year after which additional reports can be attained at a small fee. A credit report is the organised version of your credit information supplied to potential lenders by a credit bureau. This can be requested from any credit bureau, including
TOP TIP: Not sure how to read your credit report, or unsure what some of it means? Take advantage of our CREDIT SERVICES. A credit analysis will give you a detailed breakdown of each account, its status, how it affects your credit profile and what can be done to improve it. This service is available at a nominal fee or R50.00 and includes in-depth classification of the negative information on your profile.
Close any accounts you’re not using
If you decide to cut down on your monthly expenses by no longer using certain lines of credit (e.g. clothing accounts), close it down. This will ensure that you’re not tempted to spend, and it will safeguard your personal information as well.
Cultivate a stable lifestyle
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 while.
Pay off more than you need to
If you’re paying off debts (e.g. a credit card, home loan, etc.) try to pay a little more than you need to every month. This will show the bank that you are serious about managing your finances responsibly and will definitely count in your favour when it comes to your credit record.
These guidelines should help you to improve your South African credit rating. 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 touch with a Libertine Consultants representative. We’re here to help you live a more financially prosperous life in 2020 and beyond.