It’s been a year since the pandemic crippled the world and the country financially. Many people are still trying to recover from 2020. Twelve months later we are looking at 2021 with different eyes under the new normal.
Many are still dealing with a range of financial, work and health stresses that they never could have imagined. With all the lessons learnt from last year, many want to protect and prepare their finances.
The EXPRESS spoke to vice-president of TransUnion Consumer Kriben Reddy about consumers preparing and making sure their finances are healthy. Reddy said the best way to prepare and protect finances is to make sure you have a good credit rating and managing your finances better.
“The are a few easy steps you can do to provide yourself and your family with a stress-free year of finances and improve your credit score. Not only that but also credit management challenges that consumers face such as dealing with defaults and judgements against them,” said Reddy.
Know how much you owe
“Check your credit limits on your loans, accounts, credit cards and overdrafts, and then see how much you owe on each of them. “One of the best ways to improve your credit score is to decrease the amount of credit that you’re using,” said Reddy.
He said to make a plan to pay off as much of your outstanding balances as possible, it will reflect on your score and ease the pressure on your finances.
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Pay your bills on time
He stressed the importance of paying on time. “A big no-no when it comes to a good credit score is late payments. “The way to build a good credit history and credit score is to make regular and timely payments. “If you have loans, accounts and credit cards but your payment history is dragging down your score, dedicate the next year to meticulously making every payment on time. “If you can pay more than the minimum payment in the process, that’s even better,” said Reddy.
Check your credit report
You’re entitled to one free credit report every year, Reddy encourages consumers to use it.
“Get a copy of your credit report, and go over it with a fine-toothed comb to check for inaccuracies, like accounts you don’t recognise or incorrect information about late payments.
“Disputing this kind of inaccurate information, and getting it removed from your credit report should improve your credit score,” said Reddy.
Stick to a budget
He said since we are now limited to exposure to public places and gatherings, it’s a good time to work on budgets.
“Cook more at home, instead of going out.
“Use the money you’re saving on petrol to pay off some accounts.
“By budgeting and paying back your bills on time, you’ll be on your way to getting into great financial shape for next year,” said Reddy.
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