How reliable is your Clearscore score?

[Convict]

So I have started the year out with a clear goal in mind, to improve my credit score, and in Jan it was still on 0. I started late in life due to my prison situation...lol It has gone up a lot, and it is now more than the average for my area, according to the Clearscore app. What I would like to know, how reliable is that score that gets generated by Clearscore? Is it a good indication of credit worthiness if you can call it that?

 

[Mr Smooth]

Not sure of Clearscore but Transunion is pretty decent.

 

[dj_jyno]

Seems like they use Experian, so it's pretty accurate (as these things go).

 

[zerocool2009]

Compare credit scores, as most are for free

 

[Tman543]

They all use either Consumer Profile Bureaus (CPB), Experian, TransUnion, VeriCred and Xpert Decision System (XDS).

Which all have 'different (weightings)' criteria and ratings, depending on which finance institution you applying for credit.

Just make sure you above national average, credit score more like a trustworthy index, the longer you have history (of good debt) the better your position

 

[Tman543]

You can use "direct axis pulse" as well

 

[B-1]

There are a few different ones all with slightly different criteria. You can get a free credit report once a year from all of them so do that and make sure your details are all up to date on them. To get a higher credit rating at first getting people to give you credit and then using/paying it down soon makes a big difference. So have big limits on CC/clothing cards but pay them off every few months and don't get into debt but use them often.

 

[Convict]

There are a few different ones all with slightly different criteria. You can get a free credit report once a year from all of them so do that and make sure your details are all up to date on them. To get a higher credit rating at first getting people to give you credit and then using/paying it down soon makes a big difference. So have big limits on CC/clothing cards but pay them off every few months and don't get into debt but use them often.

Thanks for the advice, that is what I'm doing at the moment, just trying to push my score up asap. Had to get a clothing account, used it once and paid of the debt.

 

[Convict]

There are a few different ones all with slightly different criteria. You can get a free credit report once a year from all of them so do that and make sure your details are all up to date on them. To get a higher credit rating at first getting people to give you credit and then using/paying it down soon makes a big difference. So have big limits on CC/clothing cards but pay them off every few months and don't get into debt but use them often.

Thanks for the advice, that is what I'm doing at the moment, just trying to push my score up asap. Had to get a clothing account, used it once and paid of the debt.

 

[zerocool2009]

Whats your motto to push your credit report?

Buy a car?
Buy a house?

Get credit?

Give more info on your requirement

 

[Convict]

There are a few different ones all with slightly different criteria. You can get a free credit report once a year from all of them so do that and make sure your details are all up to date on them. To get a higher credit rating at first getting people to give you credit and then using/paying it down soon makes a big difference. So have big limits on CC/clothing cards but pay them off every few months and don't get into debt but use them often.

Thanks for the advice, that is what I'm doing at the moment, just trying to push my score up asap. Had to get a clothing account, used it once and paid of the debt.

 

[zerocool2009]

Whats your motto to push your credit report?

Buy a car?
Buy a house?

Get credit?

Give more info on your requirement

 

[Convict]

Whats your motto to push your credit report?

Buy a car?
Buy a house?

Get credit?

Give more info on your requirement

For 2022, I would like to buy a small place. I'm renting and would rather use that money to pay of my own place.

 

[Snyper564]

For 2022, I would like to buy a small place. I'm renting and would rather use that money to pay of my own place.

Owning a place is not everything. The whole paying someone else's bond is only a half truth. There is absolutely nothing wrong with renting an extra year or two and then. Putting the extra cash saved for a larger deposit.

There is actually one specific time when buying is recommended and that's when the bond payment exceeds the rental amount.

 

[warwickw]

A good way to improve credit score, is to open and Edgars account, buy something and pay it off each month on time. Paying things off early doesn't improve your score, stick to the monthly payment plan it shows credit history and that you can manage your finances.

 

[Foxhound5366]

A good way to improve credit score, is to open and Edgars account, buy something and pay it off each month on time. Paying things off early doesn't improve your score, stick to the monthly payment plan it shows credit history and that you can manage your finances.

Yeah ... this is how I started back in the day. Got a six-month interest-free account. It's a no-brainer. That and an MTN cellphone contract (because Vodacom kept declining me because I didn't have a credit record lol).

Once you've got your training wheels off, you get a car loan ... maybe a revolving loan ... and from there it's just rinse and repeat.

 

[zerocool2009]

Lets reverse a bit! Do you have a bank with a clear banking record?

If you bank with FNB (an example), they have their own internal credit record how you spend and how savvy you are with money

Lets say you bank with fnb, go to absa and apply for a bond, you will get a crappy rate as it aint your primary bank. Alot of clients dont have a choice to bank at bank A, and at bank B a bond

My advice, get a phone contract for starters asap. Then try to save for a deposit (tymebank have a great 7% rate), read up on that.

 

[ShaunyCT]

There are a few different ones all with slightly different criteria. You can get a free credit report once a year from all of them so do that and make sure your details are all up to date on them. To get a higher credit rating at first getting people to give you credit and then using/paying it down soon makes a big difference. So have big limits on CC/clothing cards but pay them off every few months and don't get into debt but use them often.

Not big limits, but AFFORDABLE limits. If you earn lets say R5,000/month and you take a credit limit of R50,000 then it will not help you 1 bit to get a good credit score.

However if the system approves a R50,000 credit limit, but you take R5,000 instead, then your credit score will be good. Unless there is something that you in arrears with at any credit provider. If that is the case then you should sort out any arrears that you have.

 

[NeonNinja]

It was bad 8 months ago like less than 100. However, I improved it drastically.

Can't even qualify for a car (with ~R30k profits each month (own business)). However I did get a credit card, and 2 Vodacom contracts.

 

[B-1]

Not big limits, but AFFORDABLE limits. If you earn lets say R5,000/month and you take a credit limit of R50,000 then it will not help you 1 bit to get a good credit score.

However if the system approves a R50,000 credit limit, but you take R5,000 instead, then your credit score will be good. Unless there is something that you in arrears with at any credit provider. If that is the case then you should sort out any arrears that you have.

I believe they also look at available credit vs utilized. So if you have 100000K available across all your accounts but only typically use 10% of it that will increase your score. But Ive only seen the formulas for on bureau and I know they can be quite different.