We all known that when you want to apply for a personal loan, study loan, vehicle finance or even a home loan, you need to have a clear credit history. This is why it’s important to know what is going on in your credit report and make sure that you pay your bills on time.
Good Credit Score
Not only do you have to be employed, earn a salary and being a South African citizen, you also need to ensure that you have a good credit score. A credit check is a quick check that is done on you to confirm that you have a good credit history, making you a good candidate for a loan or other credit agreements.
There are thousands of credit checks being done every day on people throughout the country and this gives the creditor an overview of your payment history, and whether you are a risk to them or not. The better your credit history, the lower your risk is and the easier you’ll be approved for credit. If your credit rating comes back as blacklisted, you need to clear your blacklisted name.
In order to ensure that your credit history always remain positive, pay your bills on time and never take up too many credit offers that you won’t be able to comfortably repay. Also, if you struggle to pay your debts, make an arrangement with your creditors as soon as possible
Always try to pay off the accounts with the highest interest rates first. In addition to this, you can keep an eye on your credit record by obtaining your credit report from various providers like TransUnion. This is a great way to keep up to date on what’s going on with your credit history, as well as who has been making enquiries on your name.