How To Correct Your Credit Recods
Overview
It has been established that South Africans are currently spending 76% of their take-home pay on debt repayment. This is before school fees, groceries and petrol is paid for. This over-exposure to debt means that very little is left over for savings. While few individuals can afford to pay R100 000 in cash to buy a car, it doesn’t mean that they need to be in debt for their entire lives. Below are some tips on how to go about correcting your credit record.
-Pay accounts before the due date because the bank may take longer to process the payment.
-Don’t take on any new credit, even if it’s a cellphone contract – this affects affordability ratings.
-Even one late payment can set you back if you’re trying to fix your credit record.
-Close accounts that you are not using – an open line of credit means you have access to the money and this could affect your affordability rating.
-When you pay up accounts make sure you get a settlement letter from the credit provider.
-Make sure all your details are up to date, especially if you have a new job or address.
-Never take on an account in your name for someone else.
It is also worth noting that you are entitled to a free credit report annually from any major credit bureaus. You simply send them an email with a copy of your ID and they will contact you to do some security checks. If you need more than one per year, there’s a nominal fee below R100.
