Nowadays, not many things in life are completely free of charge, but thanks to the National Credit Act, you’re entitled to a free up-to-date credit report every year. Taking advantage of this free online service via a registered credit bureau (like Transunion, for example) is definitely a good idea.
Knowing your credit record and keeping it healthy is particularly important when applying for longer-term credit – such as a home loan, or vehicle or business financing – as most credit providers check your credit and payment behaviour.
Check your credit health at least once a year. If there are red flags on your record, make sure you address them right away. Speak to your financial advisor about how you can stay on top of your debt and make healthy credit part of your financial plan.
Be conscious of all your outstanding debt and ensure your payment history reflects regular and timely repayments. Credit providers have access to your financial information, and can see if you have defaulted on or honoured your contracts. Knowing your credit record also means that you can take a more realistic approach to your finances.
Consider the following five tips to improve your credit score:
Seek help from a financial advisor who can help you to draw up a holistic financial plan to manage your finances and maintain a healthy credit record.
Soré Cloete is senior legal manager at Old Mutual Personal Finance.
Brought to you by Moneyweb
For more news your way, follow The Citizen on Facebook and Twitter.
Download our app and read this and other great stories on the move. Available for Android and iOS.