I was offered a clothing account while still a student and unemployed. I struggled to pay it off until I got employed. My score was about 100 when I paid it off. I started taking pay day loans and paying them off to to try improve my credit record. I have improved my record to about 500 now. I would like some advice on what else I can do to improve my record and how much do I need to apply for either a home loan or vehicle finance. Thanks
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Improving credit record.
- Thread starter Scheva
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- credit score
supersunbird
Honorary Master
With which credit bureau is it 500?
cr@zydude
Honorary Master
How high is the interest rate on payday loans? If you can use the cleverly, credit cards make a great addition to your finances. Buy everything as you normally would, but put those items on your. As long as you settle in 30 or 55 days, you don't pay any interest.
airborne
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Aren't they more interested in Pay slips and bank statements these days, gone are the days when a good credit rating equalled easy credit. Now it's all about affordability based on concrete facts, ie my income is xxxx each month and I have living costs of xxx etc.
Credit bureaus these days are more used to check for any negative listings/blacklist items than ahh this guy is 100% just give him the money Bob and if he asks for more double it.. Don't worry I checked his credit history.
Credit bureaus these days are more used to check for any negative listings/blacklist items than ahh this guy is 100% just give him the money Bob and if he asks for more double it.. Don't worry I checked his credit history.
supersunbird
Honorary Master
That depends on the provider of the credit. Great credit score and his payslips and bank statements and income/expenses are in order? Give that man a Bells... on credit
Back on topic, other things that can reflect on your Credit Report and thus improve your scoring if you pay it as you should:
Short term insurance
Long term insurance
supersunbird
Honorary Master
I guess it's up to the provider, Sanlam and Frank.net. My Old Mutual life insurance doesn't show...
airborne
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I've only seen short term insurance on my credit rating.
cr@zydude
Honorary Master
That's strange though, since insurance has to be prepaid, and thus isn't credit.
Sinbad
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I imagine it shows responsibility, and lowered risk of an accident causing severe financial damage?
supersunbird
Honorary Master
And another source of payment behaviour to boot
Drifter
Honorary Master
Insurance could be used to see your payment patterns, but seeing that it is not a credit agreement, it can't be used to determine your credit score.
IziWhatNow
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There already is a very long thread with good tips to improve your credit score here.
Like suggested, a credit card is the easiest way to improve your rating. And remember, the used:availale ratio is very important. Get a high credit limit but only use a little bit. Protect yourself against fraud by setting your daily limit to a small amount. Pay it off ASAP!
Something simple like a cellphone contract might also help. But don't incur extra costs, just to get a good score.
If you pay for a Telkom line, make sure it's in your name.
Not all insurers report your payment profile to credit bureaus. Or your insurance might report to a different bureau (there are 4).
Like mentioned, affordability is also a major factor.
If you have judgement or late payments against your name, the weight it carries reduce each year. So you might just have to give it some time.
PS careful with those payday loans. If I was a company where you applied for a loan or credit, and I see payday loans on your statements, I'll be weary because it brings your affordability into question.
I see you said you need a home and car loan. Are both really necessary now? Remember that a good deposit be a bigger contributing factor than a credit score towards a good interest rate.
Hope that helps.
EDIT: With which bureau? Some score out of 850, others out of 1,000.
Like suggested, a credit card is the easiest way to improve your rating. And remember, the used:availale ratio is very important. Get a high credit limit but only use a little bit. Protect yourself against fraud by setting your daily limit to a small amount. Pay it off ASAP!
Something simple like a cellphone contract might also help. But don't incur extra costs, just to get a good score.
If you pay for a Telkom line, make sure it's in your name.
Not all insurers report your payment profile to credit bureaus. Or your insurance might report to a different bureau (there are 4).
Like mentioned, affordability is also a major factor.
If you have judgement or late payments against your name, the weight it carries reduce each year. So you might just have to give it some time.
PS careful with those payday loans. If I was a company where you applied for a loan or credit, and I see payday loans on your statements, I'll be weary because it brings your affordability into question.
I see you said you need a home and car loan. Are both really necessary now? Remember that a good deposit be a bigger contributing factor than a credit score towards a good interest rate.
Hope that helps.
EDIT: With which bureau? Some score out of 850, others out of 1,000.
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