We have all heard about this thing called a credit status. Every single one of us has one, some good, some bad. But what is it exactly and how do you access yours? Your credit status determines how banks assess you, boosting or lessening your ability to get mortgages, credit cards and more. But have you ever tried asking someone what makes up a credit status and why some are better than others?

The South African public is on average not credit wise or financially savvy — even since the implementation of the National Credit Act — little has been done to fill the gap between good personal financial management practices and a good credit status. The first step is to realise that if you have ever applied for credit, you have a credit status. Good or bad, it’s yours and you need to know what it is, what’s making it good or bad and that you can do something about it.

Reviewing your status regularly should be part of your financial management protocol as it will reflect your good and bad money habits alike and is a great barometer of your effort. Further, it can help protect you against identity theft by seeing who is looking at your credit profile or if accounts have been opened in your name. Finding out what your credit status is can be made much easier with the assistance of a credit organisation like Kudough, which can assist consumers in attaining, understanding, monitoring, improving and protecting their credit status. By using data from four major credit bureaus, credit scores, debt risk indicators and an affordability index,

Kudough has developed a ranking which plots each consumer from A+ (excellent) to an F (poor), which for the first time allows you as a consumer to really understand your credit standing and how to use this to your advantage. With an improved credit status, consumers now have the impetus to influence and negotiate better credit rates and terms across a wide range of services offered by credit lenders. So now that you know your status, what is next? Some statuses are easier to improve than others; a judgement or a default will have a negative effect on your status and may be difficult or costly to remove. Sometimes the consumer’s means to address their status are limited, again increasing the time to improve. With the assistance of a professional, this can be made far easier. Professionals will help you establish which elements are affecting your status, how to improve it and help you set your improvement plan.

Know your credit status, build your credit status and then protect your credit status. It is one of your most valuable possessions.To find out more, visit: kudough.co.za

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