How to calculate your credit score – and why it’s so important

randomcat

Senior Member
Joined
Dec 15, 2018
Messages
787
Yes, I am doing that, at 640 with only the CC for 11 months, end of this month should jump as 1 year on clearscore, it's my only negative.
Very useful that I am leaving now...

Get a cheap CC based on income, my recommendation is go with Capitec, just do your spending on it and transfer over from debit card, do not treat it like a limitless card, base it on your monthly income, e.g. you have 10k from work, your normal expense is R5k, put R5k in an instant access saving account and use the CC till next payday till a max of R5k and transfer that R5k from your savings account onto the CC.

If you want to, you can also always immediately move the money over to hit R0, you just lose out on a little bit of interest in savings account/credit free window on the CC.

Timebank's app was nicer, sad they removed it.

Clearscore:
View attachment 998392

The CC utilization is updated end of each month, I'm usually at R0, only missed one month at R3k as bought something that day.
I just wanted it for a contract but I bought a phone. I may need it for a house down the line. I'm trying to avoid getting into debt. I've seen a lot of people in a spiral.
 

Polymathic

Honorary Master
Joined
Mar 22, 2010
Messages
19,792
I'm on 682 and all I did was buy T-Shirt on a store account and paid it off within 3 months.
 

Johnatan56

Honorary Master
Joined
Aug 23, 2013
Messages
28,289
I just wanted it for a contract but I bought a phone. I may need it for a house down the line. I'm trying to avoid getting into debt. I've seen a lot of people in a spiral.
I know plenty who managed to get a contract without credit history using income and bank statements.
In regards to debt spiral, depends on how you manage it, too many use their credit card as something they can splurge with which ends up backfiring as they don't really realize how much interest a credit card is until they need to pay it.
 

randomcat

Senior Member
Joined
Dec 15, 2018
Messages
787
I know plenty who managed to get a contract without credit history using income and bank statements.
In regards to debt spiral, depends on how you manage it, too many use their credit card as something they can splurge with which ends up backfiring as they don't really realize how much interest a credit card is until they need to pay it.
Until recently, I didn't have a payslip or regular amounts going through my account.

Yes, quite a few do. Scary how many people are using a credit card for groceries these days because they can't afford to pay upfront. There was an article on it a while back, if I'm not mistaken.
 

John_Phoenix

Expert Member
Joined
Jul 8, 2017
Messages
1,087
Some knowledge I've picked up in my time on this blue marble.

The one rule I have (other than the really big things) is save until you can afford it.

Learn to differentiate between a want and a need. You NEED food, but does it have to be from Woolworths or a boutique store? Buying wholesome food from a market or producer is a double investment, health and savings.

Realise that good "deals" are a lie, quality goods last a lot longer than goods you got on sale. The afrikaners have a saying, "goedkoop is duurkoop" which roughly translates to buying cheap things end up costing you more.

Debt, inflation, taxes and gambling?

Debt is nearly unavoidable, so choose who you promise your future hard earned money to. Your wallet should be like your beer, ice cold 100% of the time, aka money should never burn a hole in your pocket.

Inflation, unavoidable, Its not a good day when I see the interest rate drop and inflation rise, why? That R20 in your pocket, is now worth R18, and there is nothing you can do to stop it. A healthy interest rate is a good way to offset inflation as much as possible. This way, you are losing, but you're losing less.

Taxes, yeah... What is that old thing about certainties... At the end Feb every year, I would rather take a punch to the gut... It's rough when that tax could have helped family, or payed for schooling or hell just bought food, but we know where it goes.

Gambling? I haven't seen a table / casino in years. Risk and high risk high rewards odds? I stay as far away as possible, not because I don't understand the prospect, but because I respect my time, resources and sweat way too much to lose it on something as frivolous as gambling. (many will disagree with me here)

In summary, we might not be born with wealth, or an easy way to generate it, but we can learn, adapt and grow, from our own experiences, and that of others.
In life, anything worth while takes time, months, years, decades. Plan for the long haul, and learn to live within your means.

Learn, not to make do with less, but with just enough to keep you happy, healthy and hustling.
 
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