Building your credit score doesn’t have to be rocket science
We can’t all be good at maths, science, and accounting; but we can all be good at managing our own personal finances. This includes budgeting and how we use credit. Our credit behaviour has a huge impact on our credit score. A poor score can affect how much a lender will loan you, at what interest rate, and even your insurance premium.
1. Pay bills on time
Paying the correct amount on your credit accounts on time each month is the simplest way to improve your credit score. By missing payments or not paying the full installment, your credit score will drop quickly. Lenders look at your score and payment history before deciding to lend you money.
2. Pay off small debts
Store credit can help increase your score but having too many small accounts that are at their maximum, can affect your score negatively. If you have many accounts like these, pay a few off them off quickly; or at least get their balances below 50%.
3. Dispute errors on your credit report
Errors on your credit report can cause havoc with your credit score. It’s important to ensure that your details are correct with the credit bureaus. To make sure Compuscan has the most correct information on you, go to www.mycreditcheck.co.za to get your credit report. If any of your personal or account information is incorrect, contact [email protected]
or 0861 51 41 31 to log a dispute.
4. Use your credit responsibly
Overusing your cards, always using them to maximum, paying off credit accounts with other credit cards, etc. are all irresponsible uses. It’s advisable to keep store cards at less than 50% of their maximum limit. You’ll get the benefit of having and paying off credit but will also not be seen as an irresponsible spender.
5. Don’t open multiple accounts
Applying for multiple accounts within a short period of time decreases your credit score. People who open multiple accounts look risky to lenders. Having a few key accounts is easier to manage and better than opening many accounts.
While there are many ways to improve your credit score, by following these top 5 tips, you can master your credit score! 😄