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Do you know your credit score?

Posted: 29 May 2014

4 mins to read

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Your credit score is the single most important financial score you’ll ever get.

What is a credit score?

Your credit score is the single most important financial score you’ll ever get. Yes, it’s even more important than matric aggregate, body fat count or golf handicap, since credit providers use this score when deciding whether or not to extend credit to you. So be sure to maintain a good track record!

Your credit score is calculated using info from your full credit profile. Compuscore evaluates all of your accounts, your adverse information and your payment history to assign you a score of 0–999. The higher your score is, the better your credit profile, and the lower your risk will be of defaulting on an account or loan would be. Got that?

The example below illustrates someone with a high credit and low risk score:

Please note: Your Compuscan Compuscore will differ from that of other credit bureau scores. All registered South African credit bureaus calculate credit scores differently, using different weights and measures.

Why trust our score?

The Compuscan Compuscore is drawn from your credit report, which includes your borrowing, charging and repayment activities. It summarises a number of positive and negative factors that aim to predict how likely you are to honour your credit commitments in the future.

A good rating helps you reach your financial goals while a poor rating limits your financial opportunities. Since your credit report influences whether you are able to buy a home or get any kind of credit, it is extremely important to protect your credit score by making loan and account payments on time and by not taking on more debt than you can handle.

Key information used to calculate your credit score includes account information (personal loans, credit accounts, other loans), public records and enquiries (requests by lenders to view your credit). Information such as race, gender, where you live and marital status are not used in calculating credit scores.

What does it cost?

We'll send your credit score once a month via SMS for as little as R53 (3 month subscription). Sign up and register now!

Your credit score is also included in the full credit report and we'll SMS your score on a monthly basis, should you sign up for the 12 month full report package.

How do I maintain a healthy credit score?

  • Pay the full instalment amount that is owed on your account(s) every month
  • Budget – never buy on credit without knowing if you can afford the monthly instalments
  • Never ignore a letter of demand for payment. Make a phone call or write a letter to explain your situation
  • Always pay your accounts on time every month
  • If you are unable to make a payment due to unforeseen circumstances, talk to the credit provider concerned and make alternative arrangements to pay back what you owe
  • Try to keep credit repayments between 20% and 30% of your monthly income. For example, if you earn R5 000 per month, keep all of your credit repayments to within R1 000 and R1 500 per month
  • Ensure that you always supply the most accurate information about yourself on a new credit application
  • When applying for credit ask the credit provider to show you how much you will pay every month, depending on how much you spend, to prevent yourself from becoming over-indebted
  • Check your credit report regularly to make sure that the information on your credit report is accurate
  • Never ignore a summons to court for non-payment. This could become a very serious reflection on your credit profile