Are you happy with your Credit Score? Are you financially stranded and cannot figure out how to improve your score and have your loan approved? There are ways that you can improve your score and stay credit fit forever if you do the 5 recommended ways to stay on top of your game.
Even if your credit score is a mess, you can fight your way up to be an even better score. Lenders will do credit checks before approving your loan request. It’s a process involving the credit bureau to ensure that you pay your debts on time. Ensure that providers are registered credit providers in terms of the National Credit Act.
The higher your credit score, it shows that you are reliable and know how to manage your money, and also, it’s a good reflection of your credit fitness. If you pay your debts on time, always, your low score will increase.
Here are 5 ways to have a good credit score:
1. Financial Commitments
We know it’s never easy to stick to commitments especially when you have a lot going on in your life, but unfortunately, you have no choice but to make timely payments in order to increase your score. When your debit is due on a particular date, it’s best to honor your contract – missed payments will only drive your score below, and deem you as a poor payer. However, should you still be behind your payments, please ensure that you sort it out quickly.
2. Make Payments
This goes without saying – if you’ve successfully borrowed money, it’s best to make payments on time. Don’t pile up your debt as that will affect your score in a very negative way. Making your payments on time will increase your credit score. So, make it a habit to pay off your debts as it will show that you know how to manage your money and that’s a big advantage and will get you a great score, not to forget a possible life-changing loan should you ever need one, for your business or whatever you may need it for.
Add a little more than your minimum monthly payments as it’s a best practice and can positively affect your credit score, which is a good thing.
If you fail to make payments and unable to, it’s best to contact your creditors to inform them, by doing this, it shows your honesty and you will be given time to get back on your feet. It’s often best to do so ASAP.
3. Close Accounts
You might be having a whole lot of accounts from multiple clothing accounts, gadgets accounts, furniture accounts, loans, credit cards – that’s just too much, you may need to reconsider other ways to best manage your accounts.
If you have a low score – you need to close some of the accounts. Close all accounts that you don’t use, as they are still being used by creditors when borrowing money.
If you have fewer accounts, the lower the risks of falling into a pit of financial misery.
4. Keep a High Credit Limit and Low owed Credit
Even if your credit limit is at a high, that’s shouldn’t tempt you to take higher loans. Keep it at a high, and borrow less, this is a positive step in regard to creditors.
There are ways that you can achieve this, just don’t borrow too much then you can handle and make sure you know how to manage your money. Draw up a budget that you need to stick with in order to get your finances in order.
5. Know your Credit Score
Most of us don’t know our credit score, it’s best to know your credit score – as you are entitled to one free report per year from the Credit Bureaus, however, you can access your credit score anytime for a small fee.
[ht_message mstyle=”success” title=”” show_icon=”true” id=”” class=”” style=”” ]A Service that offers ONE free annual credit rating report is Transunion.[/ht_message]
Before applying for a loan, please ensure your record information is up to date.
Company Example and Repayment methods recommended
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LoansDirect giving you direct access to financial freedom
From time to time we will be looking closely at these companies to help you as a consumer have a better experience on the internet, and feel safe and secured. Soon we will be launching iBusiness Community for all complaints and queries.
LoansDirect, gives you access to funds that you may need of up to R150 000, It takes 5 minutes to complete the form.
You can do as you wish with the money loaned, such as buying a car, pay off a debt, renovating your home, buying a few gargets, paying school fees, e.t.c.
LoansDirects has already processed over 300 000 loan applications; you can choose to repay your loan to up to 6 years. LaonsDirect partnered with trusted brands,
Loansdirect has a number of premium partners who each apply their own credit criteria to assess loan applications. The maximum interest rate charged on their loans is 27.75%, with payment terms between 7-72 months.
Example (excluding credit life insurance) of a R60 000 loan over 60 months.
| Interest Rate | Loan Value | Term | APR | Total Amount | Total Amount Less Capital | Monthly Instalment | |
| Maximum Interest Rate | 27.75% | R60 000 | 60 months | 30.66% | R117 931 | R57 931 | R1 966 |
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Tips
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- Stick strictly to your repayment methods because, at the end of the day, you are the one who will be faced with unresolved financial predicaments.
- Pay on time, always.
- Inform the creditor if you are unable to make payments.
- Close accounts that are not in use, as creditors include them to assess your management skills in terms of your finances.
- Know your rating
- Don’t make too many loans
- Lower your risks by closing accounts
- Make sure you understand what’s required of you when taking up a loan
- Keep your credit limit high, but the borrowed money should be low, this proves you know how to manage your finances.
- Ensure that you read the creditor’s terms and conditions
- Spend your money wisely
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