If you need to improve your credit rating there are a couple of foolproof ways in which to do this. Getting credit is becoming more and more problematic, so best to get all your ducks in a row prior to applying for credit, because you will only qualify for credit once credit checks are done and the creditor is satisfied. One way to find out if you are eligible is to request a credit report online – this is not only easy but is also free. Get a credit report from all three major credit bureaus in SA and this way you will be able to move forward with your application.
• Always ensure that all your overdue bills become a priority and if you do have any issues paying your debts, then make arrangements with your creditors.
• Be sure that your loan payments are made well on time – and that you pay the right amount every time.
• Never use more than what you have on your credit limit; it is a good idea to keep your debt as low as possible.
• When applying for a home loan open up a few store accounts and ensure that you pay these on time every time, as this will increase your credit rating quite considerably.
• If you make numerous credit applications within a short space of time, this will be perceived as being a credit risk.
• Credit cards from financing companies should be avoided at all costs because these will affect your credit rating negatively.
If you do get into hot water ensure that you know your rights when it comes to debt collecting. When a debt collector comes calling remember that a debt collector’s job is strictly regulated.
And remember this American proverb – before borrowing from a friend, decide which you need most. When applying for credit, credit checks are mandatory. Credit is something everyone needs – ensure that you are well-prepared when applying for yours.