What is a Good Credit Score Rating here in South Africa?

 

What-is-a-good-credit-score-rating-here-in-South-Africa?

Credit scores are vital for modern –day consumers. They provide simple indicators of how well or poorly people have paid their debtors.  They offer good ways of assessing the finances of people or companies. They’re essentially a summary of everything contained in the credit reports of companies or individuals.

It gives an overview of risk an applicant presents. They guide lenders with judging repayment behaviour, making it easier to make informed decisions prior to granting finance.

Debt history and financial capabilities affect these ratings.

What qualifies as a good credit score rating here in South Africa?

750 +                     Excellent

As a debtor, a rating in this category means you’re regarded as an ideal debtor, meaning that you will get special rates.

720-749                Very Good

Borrowers in this category are often a safe bet for lenders. Most responsible debtors fall into this bracket.

680- 719               Good

You get access to the best financing facilities.

620-679                Poor

This position isn’t the most favourable.  It means that you aren’t very likely to qualify for loans. Those that you do qualify for are likely to come with high interest rates because of being a high risk.

619 – Below       Very Poor

With a score lower than 620 you won’t qualify for any type of financial assistance. At this stage it would be better for you to reassess while focusing on getting the ideal score.

A good credit score rating here in South Africa typically means having one that is higher than 680.

What you can do with a high score is potentially qualify for access to loans. With an excellent score, you’d get low interest rates.

 

 

Categories: Finance

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