Your credit score is more than just a number on a credit application. It helps lenders understand how you manage credit and influences the offers and interest rates available to you.
A healthy credit score can save you thousands over time. Here are a few simple ways to improve it:
Know your credit score
You can’t improve something you haven’t checked. Reviewing your credit score regularly helps you track your progress and spot any problems early.
Keep your credit usage low
Try to use no more than 30% of your available credit. For example, if your credit limit is R1,000, aim to keep your balance below R300.
Pay on time
Your payment history is one of the biggest factors affecting your credit score. Paying your instalments on time helps build a positive credit record.
Borrow only what you need
Only apply for credit when you need it and can comfortably afford the repayments. Taking on too much credit can make it harder to manage your money and may affect your score.
Reduce outstanding debt
If you have missed payments or have overdue accounts, arranging a payment plan can help rebuild your profile.
Read more: Tackle debt with 3 smart strategies.
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