April 28, 2023

Debt and your credit score report

credit score report

Have you ever wondered what your credit score report really means? We are all aware of the current economic status in South Africa. And just like our motto: “Diverse people unite”, we need to unite by changing the status of consumers in a greylisted country.

It starts by checking your credit score and then maintaining it by ensuring you pay off loans, credit cards, and store accounts. So, let’s take a closer look at how credit score reports work and what you need to know.

How is a credit score calculated?

When entering the world of adulthood, the first thing we learn is to open a store account to build up a good credit score. The score consists of the amount you owe as a whole, the number of accounts you have, and the amount of your total debt compared to the credit available to you.

Each time you pay an account on time, your score increases. However, high balances, maxed-out credit cards, and late payments will lower your credit score. It’s all part of the game of give and take.

Here are things to keep in mind when making debt:

Ensure you have a consistent income to pay your debit orders or instalments on time. Take insurance out on your loan in case of insolvency, retrenchment, or disability. In some cases, like a home loan, repossession can occur if payments aren’t made. Ensure your family’s safety by paying on time.

Read: Car repossession rules while under debt review

What is good credit scoring?

In South Africa, if your score is over 680, it is considered good. With a score like this, banks are more likely to offer you finance, and you may even find the banks phoning you to provide you with a silver platter selection of options.

Maintaining a good credit score is key; you can avoid decreasing your score and developing a bad credit record with every late payment.

How to check my credit score report?

Many online platforms allow you to check your credit rating by providing your South African ID number. Most banks, credit vendors, and banking apps can offer the same information too.

Debtline can provide you with your credit score report free of charge. The report is detailed, and you can use it to monitor and maintain a good score. It is critical to have your report if you are considering buying a house or getting finance on a car.

How to fix your credit rating

Companies like Debtline assists people in recovering their fallen credit score by implementing regular monthly payment that they can afford. With recurring payments, your score steadily increases again. If instalments are managed and negotiated by an external source like Debtline, they can get you back on track in under 60 months.

Debt review is a reliable way of getting ahead of your debt with the help of expert advisors and relief programs tailored to your needs. Put your financial future in Debtline’s hands, and let us be your guide to living debt free.