Having a good credit score


Tips on improving your credit score

By now, you've probably heard a lot about having a "good credit score", or "a good credit record". If you’re feeling a little uncertain, here is some really helpful information on:

What is a credit score?
A credit score tells you if you have a good paying credit record. Think of it like a mark at school but for debt management. Legal financial service providers such as banks and RCS use the credit score to decide whether you qualify for a loan or a credit facility.

The credit score is defined by your credit history. It tells us how you have managed credit until now. In a nutshell, it is your financial reputation.

Why is it important to have a good credit score?
With a good credit score, you can get approval for a loan or credit facility easily. You also get higher credit limits and larger loans.

Find out what your credit score is:
The simplest way is to request a once off free credit report via TransUnion, the reputable credit information provider. The credit report includes useful information about your credit history, including the factors that counted towards defining your credit score.

 

HOW TO IMPROVE YOUR CREDIT SCORE

 

AVOID BEHAVIOUR THAT DAMAGES YOUR CREDIT SCORE

 

IF YOUR CREDIT SCORE IS LOW

This usually happens if you are in a debt spiral.

A debt spiral occurs when the only way for you to pay off debt is to contract more debt. In this case, you must seek debt relief solutions. It’s important to check if you are in a debt spiral as it will damage your credit score.

If you are safe from the debt spiral, focus on lowering your debt - it will slowly but surely improve your credit score. The best way to do this is to prioritise repaying your debt over creating new expenses. This may seem challenging at first but it’s worth it.

We do our best to provide you with all the information you need. If we missed something, please let us know below and we will respond shortly.

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