Page 23 - IFV Issue Issue 9_2022

Lifestyle

financial profile compares to that of People with higher credit scores can be also lower your score.
other consumers. considered for better interest rates on Although keeping your creditors
But Ssemanda warns that checking loans, insurance premiums and rentals. informed if you’re having difficulty
your score once a year may not be “There is a perception amongst some won’t improve your score, negotiating
enough. “A lot can happen in a year and consumers that there’s nothing you can a payment schedule is a positive step.
if there’s a sudden downward change do about a below-average credit score,” Over time, as you settle the outstanding
in your credit score for no apparent says Ssemanda. “This simply isn’t true, balances, this should reflect positively
reason, you need to respond quickly. although it can take some time.” on your score.
It could be anything from an error to Ssemanda says the first thing to It is important to remember that any
identity theft.” consider is whether you’re paying your overdue account will negatively affect
There are a number of free online debts on time. “Even paying a few days your credit score and paying it off, or
tools you can use to keep track of your late can affect your score.” closing it, doesn’t make your payment
credit score. Usually all you need to do If you have several debt history go away – this information can
is register and you will be able to check commitments, then use the credit stay on your record for up to five years.
your score as often as you like. report to try and prioritise them. Pay “Establishing and maintaining a
Very few consumers have perfect off the debt with the highest interest sound financial reputation gives you an
credit scores, which means nearly all rate first, while maintaining minimum advantage that is often underestimated.
have room for improvement. A benefit payments on other accounts. Try to It’s like getting a bursary, and then
of bettering your score is that you will avoid taking on more credit, especially you fail a subject – it’s something you
be able to access credit if you need it. revolving credit such as store accounts. take for granted until it’s taken away,”
Another is that it could save you money. Increasing your available credit could concludes Ssemanda.

For more information about how to achieve a better credit
rating visit: www.directaxis.co.za/make-a-plan/how-to-build-a-
good-credit-record
To register for a free credit report from TransUnion, go to:
https://mytransunion.co.za/Registration/Index/YCR001
or go to Experien’s My Credit Check: www.mycreditcheck.co.za

The Villager • Issue 9 2022 • 21