Improve Credit score

[supersunbird]

I have been doing this every month since May. It has been 7 months, including May and December. I have been buying clothes from Mr Price on credit and paying it back the same day. I tried applying for a Samsung A30s contract with Vodacom for R229 a month and was denied.

On clearscore my credit score is 654/750. Vodacom can't tell me what my credit score needs to be to get a contract. I have approached FNB and Standard bank to apply for a credit card, both of which denied my application, but they can't tell me what the requisite credit score is either. FNB offered me a R4000 loan which I would have to pay back R9000 after 6 months. Tony Soprano would blush at those numbers.

I offered to put down a R40k car as collateral on my R4000 loan, but this was denied.

The mechanics of the credit system are opaque to even the people that work in it (e.g. bank employees), as an outsider to it, I have no idea how I am supposed to understand it. This whole process has been very frustrating and I have simply decided to buy my cellphone in cash from Takealot.

It's not just the score itself, it's the short time you've had a history, you need to give it more time because 7 months history is almost nothing. You will see on the free report's it shows how long you've had contracts.

Maybe try a ABSA Flexi Core credit card with a lowish limit?

 

[chloroformaa]

Is it true that debit orders for smaller things (for WiFi, SIm plan only without a phone etc) do not improve credit scores since we are paying in advance of month (If DO date is set to earlier of month) and so it's better to put DO date at end of month, so in that case , we are paying after utilising the service for that month (a kind of credit to us) .....?..bcoz I have heard some other people say that these simple DOs don't improve credit score at all irrespective of date and better to use DOs for bigger things like purchasing phone etc (bcoz that is true credit)...what you guys think..?.

 

[supersunbird]

Is it true that debit orders for smaller things (for WiFi, SIm plan only without a phone etc) do not improve credit scores since we are paying in advance of month (If DO date is set to earlier of month) and so it's better to put DO date at end of month, so in that case , we are paying after utilising the service for that month (a kind of credit to us) .....?..bcoz I have heard some other people say that these simple DOs don't improve credit score at all irrespective of date and better to use DOs for bigger things like purchasing phone etc (bcoz that is true credit)...what you guys think..?.

Do the DOs show on your credit reports?

If not, the DOs could be doing cart wheels while playing the bag pipe and it wouldn't matter to your credit score.

 

[Snyper564]

Do the DOs show on your credit reports?

If not, the DOs could be doing cart wheels while playing the bag pipe and it wouldn't matter to your credit score.

Some of mine do others don't. Don't really care just an observation

 

[Ockie]

First time I wanted to apply for my Vodacom contract I was early 20's. Was declined because I had no credit score. Ironically I was working in a Vodacom Shop lol. Went to the Edgars Red Square shop across from our Vodacom Shop...applied for a account..bought a bottle of Hugo Boss and made my monthly payments for about two months. Reapplied for my Vodacom account and was approved.

 

[neoprema]

If you paying rent. You can get the landlord to register these payments.

I've never heard of a landlord registering with Transunion, Experian and friends? How would they do that if they're not a registered lender?

 

[neoprema]

I have been doing this every month since May. It has been 7 months, including May and December. I have been buying clothes from Mr Price on credit and paying it back the same day. I tried applying for a Samsung A30s contract with Vodacom for R229 a month and was denied.

On clearscore my credit score is 654/750. Vodacom can't tell me what my credit score needs to be to get a contract. I have approached FNB and Standard bank to apply for a credit card, both of which denied my application, but they can't tell me what the requisite credit score is either. FNB offered me a R4000 loan which I would have to pay back R9000 after 6 months. Tony Soprano would blush at those numbers.

I offered to put down a R40k car as collateral on my R4000 loan, but this was denied.

The mechanics of the credit system are opaque to even the people that work in it (e.g. bank employees), as an outsider to it, I have no idea how I am supposed to understand it. This whole process has been very frustrating and I have simply decided to buy my cellphone in cash from Takealot.

So a few things.

Credit is not just about score. Its affordability too. Once the system checks your score and says ok it passes what our min is - it then goes and pulls a list of expenses registered with the bureaus. It then adds the expenses you declare, and compares that to the income. If that threshold is too risky it will decline.

Sometimes, its also just not feasible for the bank. They could be saying its just not worth our while to lend you the R4000 on this product (vs say, a credit-limit on a credit-card which is quick an easy).

Smaller loans are best had with a bank like Capitec that targets the poorer, less affluent in the country. Yes you won't get free lounge access, travel discounts, perks or even the service of banks like Nedbank, FNB, Discovery Bank etc but it still something on your road to a proper bank which you can do later in life. Neobanks like Thyme might also be an option.

Also, i might stand corrected but didn't the rules change a few years ago under the NCA which mandates the lender to give you the reason for declining your request? You should be able to push for that.

 

[zerocool2009]

I've never heard of a landlord registering with Transunion, Experian and friends? How would they do that if they're not a registered lender?

Landlords use TPN. Snd that build also up credit scoring. As it shows how you are paying for rent

 

[neoprema]

Landlords use TPN. Snd that build also up credit scoring. As it shows how you are paying for rent

Interesting. I've never heard of anyone i know who rents using it. Must tell some friends to look into it.

 

[zerocool2009]

Interesting. I've never heard of anyone i know who rents using it. Must tell some friends to look into it.

Its a rating system. And you can blacklist tenants. Thats even more fun, to get a call from a tenant who wants to buy a car or house with a red X behind their name on TPN. So the system actually work