Get Your Credit Score Into Shape

A good Credit Score is important when it comes to applying for any credit. In South Africa, the credit and financial service industry has implemented sophisticated technologies and rating practices to protect both lenders and borrowers.

In this article, we will discuss the factors that make up a good Credit Score and how you can improve your Credit Score with Kudough’s tips.

Positive and negative information on consumers is shared through South Africa’s Credit Bureaus to make more informed lending decisions. Your credit report shows your credit agreements, accounts, debt utilization, and account mix over 24 months. Below are some basic tips to build and maintain a good Credit Score:

1. Pay accounts on time and in full: Late or missed payments will negatively affect your Credit Score. Debit orders are the best way to ensure timely payments.
2. Reduce your debt utilization: keeping your credit balance below 65% of your credit limit is viewed more favourably than using all the credit available to you.
3. Limit your Credit Enquiries: Credit enquiries refer to when creditors review your Credit Report. Multiple credit applications in a short period of time will impact your credit score negatively. Remember, checking your Credit Report with Kudough will never impact your score.
4. Have a good credit mix: Having different types of credit such as secured loans, personal loans, and credit cards is viewed positively if managed well.
5. Judgments and defaults: Pay off outstanding debts as soon as possible, starting with the highest interest earning debts. Ensure your judgements are removed from your Credit Profile by informing the Credit Bureaus with the updated information necessary

Remember to check your credit report regularly to ensure that all information is accurate and up to date. Kudough offers Professional Credit Coaches ready to help you along your journey of improving your Credit Score no matter your situation.

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