Your credit score accurately reflects your credit health. The good news is that your credit score is not fixed, and you can always raise it if you believe it to be too low:
- Keep track of your financial obligations.
On-time payments will boost your credit score. Creditors want to know how successfully you keep your promises (any late or missed payments will reflect poorly). If you get behind on your payments, attempt to get back on schedule as soon as possible.
- Clear your obligations
A large amount of outstanding debt will have a negative impact on your credit score, whereas paying it off will enhance it. Regular debt repayment demonstrates your ability to manage your finances. While only the minimal payments are required, paying a bit more each month is preferable.
If you are unable to make a repayment, notify your creditors as soon as possible.
- Get rid of anything you don’t use.
The smaller your risk, the less credit you have against your name. Close any accounts that you aren’t using. Creditors evaluate the whole capacity of your credit agreements, even if they are not utilised.
- Maintain a high credit limit while keeping your debt low.
Rather than asking creditors to reduce your credit limits, strive to minimize the difference between your amount owed and your credit limit. This is a plus in the eyes of the creditors.
- Understand your rating
South Africans are entitled to one free credit bureau report per year; extra reports can be obtained for a modest cost. TransUnion provides a free annual credit report. Before applying for significant loans or more credit, make sure all of your record information is up to date and accurate.
In South Africa, how can I clean my credit history?
Paying out the debt is the simplest approach to remove your name off the credit bureau. According to TransUnion, one of South Africa’s largest credit bureaus, your name will normally be removed off the blacklist between 7 – 20 days.
What credit score is required to purchase a home in South Africa?
around 640
In South Africa, the minimal credit score for a home loan is roughly 640. A credit score of 600 or higher will offer you a good chance of getting a home loan, though this may vary depending on which bank you use. A credit score of 670 or more is regarded outstanding, increasing your chances of house loan approval significantly.
