Improving Credit Score

[zerocool2009]

Yes, I have a personal banker. But I came here wanting to get more general opinions.

I was waiting for this answer. Ever bank have an internal credit scoring system, not related to credit but how you do banking overall.

Ask your banker for what do you qualify for starters (that is step 1)

Even if the loan rate is crap, you can simulate a lower rate by pushing capital into it (paying it off faster)

 

[wetwipes]

You have to prove that you can handle money (and credit) responsibly.
Get a credit card, buy a few items on it, pay the full amount at the end of the month. In 3 months your credit score will be great.

Credit scores also involve more than just credit, they also take into account payment records of things like utility bills, cellphone contracts and insurance. So if I were you, I'd take a short-term insurance contract out on my mobile phone.

Actually the only item listed on my report is my cellphone contract, my life insurance bill isn't listed and many utilities (eg my internet bill) are now going the month to month - cancel anytime - way and so these don't make it to the report either.

 

[wetwipes]

I was waiting for this answer. Ever bank have an internal credit scoring system, not related to credit but how you do banking overall.

Ask your banker for what do you qualify for starters (that is step 1)

Even if the loan rate is crap, you can simulate a lower rate by pushing capital into it (paying it off faster)

Maybe you haven't read my question properly. I don't need a loan. As part of a due diligence exercise on a business venture a company were doing business with wants the scores of all the directors and I am concerned mine isn't high enough.

 

[Speedster]

Maybe you haven't read my question properly. I don't need a loan. As part of a due diligence exercise on a business venture a company were doing business with wants the scores of all the directors and I am concerned mine isn't high enough.

Unless you're willing to wait a couple of months to get the business started you don't really have any options. Although, for future, it's probably a good idea getting a credit card (and using it).

 

[wetwipes]

You know, it strikes me theres a term for this sort of problem: the humblebrag. Oh, woe is me, I am too wealthy and have a poor credit record as a result.

Proceeds to:
1) Decline all advice received
2) Throws in even more completely unnecessary phrases like "come from money", "highly sought out country estate" ... we get it.
3) Complains about humour being uncharitable and reverts to a class-base insult

Yeah I think we should answer the only question that wasn't really asked: no, you can't buy a credit record somewhere. Cultivating a good record takes a few years, and as you're leaving South Africa so soon, you're just going to have to disclose your shitty credit history (I'm sure if you explain the detail about the highly sought out country estate all will be forgiven).

"Shitty credit history" is not just an unwarranted insult it's simply not true. I don't have a shitty credit history, I have a low credit score. None of the reports have any adverse reports on them - how can they be shitty.

 

[zerocool2009]

Maybe you haven't read my question properly. I don't need a loan. As part of a due diligence exercise on a business venture a company were doing business with wants the scores of all the directors and I am concerned mine isn't high enough.

Can I be honest here with you: like you said money talks. (As in you dont do credit for scoring)

If they see your credit score with 5 accounts of R200 each, will that help your? I doubt that

 

[wetwipes]

You know, it strikes me theres a term for this sort of problem: the humblebrag. Oh, woe is me, I am too wealthy and have a poor credit record as a result.

Proceeds to:
1) Decline all advice received
2) Throws in even more completely unnecessary phrases like "come from money", "highly sought out country estate" ... we get it.
3) Complains about humour being uncharitable and reverts to a class-base insult

Yeah I think we should answer the only question that wasn't really asked: no, you can't buy a credit record somewhere. Cultivating a good record takes a few years, and as you're leaving South Africa so soon, you're just going to have to disclose your shitty credit history (I'm sure if you explain the detail about the highly sought out country estate all will be forgiven).

If my post is humble brag then yours certainly qualifies as wealth shaming. What makes you morally superior?

 

[RedViking]

"Shitty credit history" is not just an unwarranted insult it's simply not true. I don't have a shitty credit history, I have a low credit score. None of the reports have any adverse reports on them - how can they be shitty.

How can you go into business but refuse to take some risk?

It is for this exact reason they want that credit score. You are not ready for such a risk and you are in fact a high risk, no matter how much you roll in the cash.

Should the day come the business needs a loan, you would be the first one pulling out.

You don't get a credit card because you need credit. You get it so they can see you can be trusted with credit. You need to start getting experience somewhere. If you do not have the selfcontrol to be able to use a credit card in a smart way, your friends should really reconsider your involvement in the business in the long term.

Or just give them a load of cash and let them pay you back with interest.

 

[zerocool2009]

How can you go into business but refuse to take some risk?

It is for this exact reason they want that credit score. You are not ready for such a risk and you are in fact a high risk, no matter how much you roll in the cash.

Should the day come the business needs a loan, you would be the first one pulling out.

You don't get a credit card because you need credit. You get it so they can see you can be trusted with credit. You need to start getting experience somewhere. If you do not have the selfcontrol to be able to use a credit card in a smart way, your friends should really reconsider your involvement in the business in the long term.

Or just give them a load of cash and let them pay you back with interest.

Exactly my view! Credit gets builds up and only logged/traced on a 24 month window

 

[SauRoNZA]

I can't talk about this venture due to a NDA.

Because it's a pet project of one of my oldest friends.

The credit score is being requested by a counterparty to this venture as part of their due diligence.

*an

If so many are involved your credit score really shouldn’t matter.

With so much collateral it also shouldn’t matter that you have a credit score at all.

If you don’t need a loan it won’t be a problem to prove you are cash flush.

 

[Crowley]

Open a credit card, buy a fridge and donate it to a charity of your choice. Or buy 50 bags of pet food and donate it to a animal shelter. Pay credit card at the end of the month.

Rinse, repeat.

 

[Foxhound5366]

If my post is humble brag then yours certainly qualifies as wealth shaming. What makes you morally superior?

I'm not wealth shaming. There are lots of very nice wealthy people who use the power of credit to their advantage. You're not one of them.

YOU decided to come in here asking for "general opinions" and rejected every one outright, decided to keep emphasising how much money you have as if that was relevant somehow, dropped a class-based insult ... should I continue?

I suggest you use some of your money on empathy classes. Pay for them on a credit card for bonus points.

 

[Rickster]

Finance a nice BMW and let me drive it.

Sorted.

 

[Smugs]

I bet this guy owns a Weber Summit E670...

 

[xodosman123]

My Bank gives me an credit score and it is not perfect, I buy everything cash yet my credit score is not perfect, By me meaning I buy cash that is from cars to Houses all cash, so actually the stupid credit score that the bank gives me is pathetic reflection of who I really am.

 

[deweyzeph]

Maybe you haven't read my question properly. I don't need a loan. As part of a due diligence exercise on a business venture a company were doing business with wants the scores of all the directors and I am concerned mine isn't high enough.

I would tell them to f-off. Your credit score is your business. Unless you're planning on borrowing money I don't see what relevance your credit score has to do with anything. I certainly wouldn't share my credit score with anyone except someone lending me money.

 

[dj_jyno]

There's just so much paper work and additional costs at buying property on loan than buying it cash.

Bond registration on a R1 million property will be less than R20k, and the monthly interest on the bond can be claimed back if you rent out the property. Not only does this give you an additional income stream (if you are so inclined), you build up a good credit score which will allow you to invest in that new business venture.

I've seen you mention that you have a private banker - make them earn their fees by letting them deal with the paperwork.

If I still haven't convinced you that it's worth the slight inconvenience, get a credit card and start using it as a transactional account (daily expenses on the card, settle full amount by month end).

 

[Other Pineapple Smurf]

Actually the only item listed on my report is my cellphone contract, my life insurance bill isn't listed and many utilities (eg my internet bill) are now going the month to month - cancel anytime - way and so these don't make it to the report either.

OP, so much bad advice on how to improve your credit score and your expectations of what it actually is.

Credit Score is a risk indicator and like all risk, the more information there is available the easier it is to make a decision. It's not about how much they can loan you, it's what is the chance of you not paying back.

I've worked in Fintech for a while with credit reports - I got to work on both sides (bridging finance), giving people credit and getting people out of credit (debt rescue).

What nails your credit risk is too much activity on your report. If you make enquiries about store accounts, their credit requests will appear on your report and it will look like you are diving into debt by making bad choices.

Your mom's place is not yours and won't count towards your creditworthiness (or what they can repossess). You have two cars you say, well there is an asset that can be used as a surity. You have cash in the bank hopefully, well that can also be used to indicate how well off you are.


You said this is for due diligence, nothing wrong with it, so rather than stress rather be proud about it. Is there not also a declaration of assets and investments as that will show you are responsible.

 

[agentrfr]

I'm currently considering a new business venture and was asked to present a credit report. I contacted two agencies and both have scored me as "average".

Here's the problem:
I am a high income earner (LSM 7) but came from a working class background. My grandparents always taught me that if I can't pay for something cash, I should do without it. So, although several banks have offered me credit cards before, I've never wanted one. I even purchased my cars cash. I am the only child of a retired company director and she and I share her luxury home, since I am not married. Although the house is very highly valued it's my moms (even though I am her heir). [She's at an advanced age and can't live alone and I neednt purchase my own home because we already own this large property].

I've never had store furniture or clothing accounts, paying cash for all my stuff.

So while my report shows no adverse information at all, the score is rather low.

Is there anything I can do to improve it?

get credit card, buy games on steam once a month for a year

 

[Other Pineapple Smurf]

I would tell them to f-off. Your credit score is your business. Unless you're planning on borrowing money I don't see what relevance your credit score has to do with anything. I certainly wouldn't share my credit score with anyone except someone lending me money.

Actually, it is their business as part of good corporate governance as it indicates the individuals ability to lead/be part of leadership.

This applies to a bad score, not a low score.