Key to a healthy credit rating score in South Africa

Our team at i-Check Data Solutions have put this article together to explain the key to a healthy credit rating score in South Africa.In order to obtain credit in South Africa, a credit provider will analyze your credit report and one of the items they will be most interested in is your credit rating score.  One of the most valuable assets an individual can have is a healthy credit rating score, every effort must be made to look after and maintain a positive rating as this will stand you in very good stead when purchasing goods or services on credit.

The good news is that if you do happen to have a poor credit rating score currently, it is never too late to start fixing it. We have listed below some pointers on how to strengthen your credit rating score and get the most favorable terms when applying for credit.

  • Make sure that you strive to pay all your accounts on time every month. If you cannot pay this month, do everything in your power to pay the following month, falling behind on payments is going to raise your risk profile in the eyes of credit lenders and make it hard for you to get future credit.
  • Make sure you pay the full installment amount that is owed each month.
  • Always try to approach credit purchases with a worst case scenario in mind with regards to your finances. If you get into trouble (IE. Loose your job, will you still be able to make payments till you find a new job?)
  •  Make sure that you budget and have a maximum level of debt you can comfortably afford. The general rule of thumb is to keep your credit repayments to between 20% and 30% of your net income!
  • Do not be scared of the credit provider, if you find yourself in some financial trouble, pick up the phone and let them know, you would be surprised at how helpful they can be and supporting. Letting them know shows maturity on your part and the credit providers usually reward this disclosure with soft payments till you get back on your feet.
  • Make sure that you never ignore the letters of demand sent by a creditor. Best bet is to pick up the phone and explain your situation to them, usually the credit provider will attempt to find a solution that will work for both of you.
  • You must under no circumstances ignore a summons to appear in court for nonpayment! This failure to turn up could really affect your future credit score and health.

i-Check Data Solutions has a comprehensive credit health report that will give you all the information you need to know your current credit rating score. If you would like to know more about this product or our other services, please do not hesitate to contact one of our friendly sales consultants today! In order to become a user please register your details by following the link LOGIN.

Key to a healthy credit rating score in South Africa