What is a Credit Score?

Credit Score South Africa
Credit Score South Africa. image: Facebook

A Credit Score is a rating that consists of three digits which will determine how likely you are to repay your debt. Credit Score is affected by payments made and the time frame in which payments were made, as well as the number of accounts you have and if they in a healthy or bad state.

The Credit bureaus keep the records of all your credit information; this is called a credit report, which will determine your credit score.

What Affects our Credit Score?

  • The most important fact is your payment history. Do you make payments on time, and if not, that will affect your score and you won’t be able to make any more loans as no creditor will trust in you as it is also not allowed by the law to give out loans to customers that can’t afford it.
  • The other factor is how long you’ve had credit, the longer good credit you have, the most likely to qualify for any loan.
  • Your Credit limit also plays a role, it is best to keep your credit limit high and your loans owed low.
  • Your Credit Score is also affected by how much debt you have, you might be drowning in debts or you could be meeting your obligations.
  • Even there are inquiries on your credit report that affect your Credit Score
  • Lastly, Credit comes in many forms, the type of credit you have, it could be a personal loan, business loan, credit card, mortgage, clothing accounts, furniture accounts, etc.

When the potential risks have been analyzed by lenders, they can then decide if you eligible and can pay back the amount. You might qualify for a lower credit or a higher credit, but in some cases, you might not qualify at all which can be very sad, but it’s never too late to improve your credit score.

You can make use of TymeCoach App by TymeBank to check and get a free credit report, all you’ll have to do is sign up with them and you are good to go.


Credit Profile

The Credit Profile will give you the ins and outs of how well you manage your debt repayments, and thus knowing how to manage your money is very vital – if you have a negative credit record, that’s obviously not good, but there’s room for improvement.

It is unfortunate that some Financial Creditors can charge you a higher interest rate, to protect themselves from bad debts.

Did you know that you are entitled to one credit report from the credit bureau annually? Well, not when you have a TymeCoach App.

Credit Bureaus in South Africa

  • Transunion

For any queries, you can contact the Transunion on 0861 482 482

  • Experian

For any queries, you can contact the Transunion on 0861 105 665

NB: The Credit Ombudsman is also available for any queries on 0861 662 837 as well as the National Credit Regulator (NCR) on 0860 627 627

What is a Good Credit?

If you pay back your fully borrowed money on time, that will be regarded as good credit, and that will affect your credit rating positively – positive credit report will go to the credit bureau and that’s a high positive.

With a Good Credit, you can qualify got more credit, and can also help lenders get a good rate.

Don’t just borrow money for no good reason, is it something you need or want, and figure it out yourself if you can be able to make repayments, and how stable your income is, as well as your employment – there are too many factors to look into before making a decision to applying for a credit.

Credit Life Insurance

It is important to have credit life insurance, in case that anything happens to you, which will prevent you from making payment; your debt will be covered.

  • Credit Life Insurance covers your debt in the case of disability, involuntary retrenchment, accidental death, natural death of the main policyholder.
  • Your outstanding debt will be covered.
  • Your family won’t have to be overburdened

Benefits of Paying Credit on time

  • Good/excellent Credit maintenance
  • Qualifies you for more credit
  • No additional fees and charges
  • Get a Lower interest rate

To ensure your loan/credit is paid on time, you need to ensure that payments are made every month, make consecutive payments, reduce your expenses, do not skip payments, use your annual bonus or tax refunds to repay debts.

Don’t apply for multiple loans, and if your application is declined, request for a reason, and you can also request a credit report, dispute any errors and pay off your outstanding due accounts.

Check Credit Score

You can get a comprehensive record of your financial history for free on My Credit Check, or TransUnion, alternatively, you can make use of ClearScore

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