If you are looking to either get a good credit score or improve your current credit score, you're reading the right blog post. Your credit score plays a crucial role in determining your financial health and can affect your ability to secure loans and get help secure your home loan. Understanding how to improve and maintain a good credit score is essential for your financial well-being.
A good credit score is important because it demonstrates your creditworthiness to lenders and financial institutions.
Your credit score is based on several factors that are taken into account by major credit bureaus.
Read: The importance of checking your credit score regularly
A good credit score will depend on the credit bureau you are requesting information from as they will have different credit scoring models. Different lenders and banks usually request credit reports from different and multiple credit bureaus. According to Experian’s credit scoring system, a good credit score would be anything from the average score (611-628) to the minimum (660-750).
Read: What's a good credit score in South Africa?
May not be fast, but these are ways you can work at improving your credit score:
Making your payments on time plays a very crucial role in improving or maintaining a good credit score. It is not only a responsible financial habit, but it also shows lenders and financial institutions that you are reliable and trustworthy when it comes to managing your debts. By consistently making your payments on time, you demonstrate that you are capable of meeting your financial obligations and are less likely to default on loans or credit.
Punctual payments have a positive impact on your credit history and can help to increase your credit score over time. Each time you make a payment on time, it is recorded and reflected in your credit report, showing potential lenders that you are a low-risk borrower. This can make it easier for you to secure new credit, such as loans or credit cards, and may even result in more favorable interest rates and terms.
You can only remove a ‘bad report’ if it is untrue.
If you find untrue/ false information on your credit report, you can lodge a dispute with the relevant credit bureau.
Missed or late payments can stay on your credit report for up to 7 years.
If you have settled an outstanding amount, it should state that it has been paid on your credit report.
Debt review at Meerkat, also known as debt counselling, can be your way to get a clean credit slate and credit record.
This will help you start afresh so that you can be in a better position to be: