The basics of your credit score.
Credit can be used to buy a house, a car, or fulfill your family’s needs
Learn more about your credit score.
As we progress through life we realize our need for credit. Credit can be used to buy a house, a car, or fulfill your family’s needs.
Here is a quick overview about the basics of a credit score.
Establishing a credit score.
In order to get a credit score you must be credit active. This means you need to have a cellphone contract, clothing store account, vehicle finance, or personal loan.It is important to remember that all credit bureaus calculate credit scores differently, and the score from one bureau cannot be compared with the score from another bureau.
Improve and maintain your credit score.
Maintain a healthy balance between your secured (home loan, vehicle finance) and unsecured loans (personal loans, credit cards, clothing stores) as this affects your credit score. Not paying your accounts or not paying on time will negatively affect your score. This will reflect on your credit report and is a deciding factor when taking out new loans.
Getting a credit report.
By law, citizens of South Africa are entitled to one free credit report per year from one of the credit bureaus: TransUnion, Compuscan/Experian, XDS, CPB, and Vericred. Credit Health provides a secure and convenient online portal to purchase your credit report from all the major South African Credit Bureaus.
What information does your credit report provide?
Your credit report contains a complete record of your accounts, payment history, amounts owed, age of accounts, judgments, defaults, and a list of occasions on which creditors requested to view your credit report - these are known as inquiries. Together, these factors are considered to be a good indication of how likely you are to honour future credit commitments.
Your credit report contains a complete record of your accounts....