It’s coming to the end of the year and you may be thinking how you can get your finances in order in the new year. The first step you should take is to access your credit report and really look at it. This will show you the current state of your finances. It’s a great starting point and you need to understand your credit score.
Why is having a good credit score important?
Your credit score affects your ability to take out any credit. Imagine you are just starting your adult life and want to get a house, a car or any other necessities for your future. You finally save up enough money to put down a deposit on your dream home/car, then you find out that your bond/finance application gets denied because your credit score is too low.
What does the credit report tell me?
A credit report will show you all your financial history. It will show you your borrowing habits as well as your payment trends. Your report will show you every time you have taken credit, skipped a payment, how much you still owe to your creditors and a lot more. This will help you see where you can improve your spending habits. You also need to make sure that all of your personal details are correct and up to date.
But how will debt review affect my credit score?
There is a common misunderstanding that being under debt review will negatively affect your credit score. This is not the case. Being under debt review can be beneficial to your credit score. When you enter the debt review process, creditors can no longer add any further negative information to your credit profile because you will now be under the protection of the National Credit Act. Your debt counselor will make sure your creditors are aware that you are under debt review and this means they can no longer take any legal actions against you. After the debt review process has been completed, you shall receive a clearance certificate and the credit bureaus are notified. Any details of judgments or arrears are cleared.
Are you struggling to keep up with your monthly debt repayments? Meerkat can help you to reduce your repayment amount by up to 50% and help you to achieve financial freedom. Meerkat can reduce the interest rates on your debt and give you one reduced affordable repayment to pay off your debt each month. Contact us today for help.