Missed payments will lower credit scores, but worse still, is when missed payment progress to blacklistings. Adverse listings severly hurt your credit score and turn your credit worthiness negative.”
De Kock of Wesbank says that one of main reasons vehicle applications are declined is because of the applicant’s credit report.
This bodes well for lenders, so in the meantime, don’t look for any dramatic relaxations. To get a home loan, you’ll generally need high credit scores, big down payments, plenty of time and reams of documentation.
“A borrower with a credit score of 702 will pay a one-fourth-percent higher interest rate than someone with a credit score of 720, even though those are both good credit scores,” said Adv Randolph Samuel, CEO of Consumer Foundation of SA, a consumer rights education NGO.
We don’t often consider the state of our credit report as an ‘advantage’, but your good credit behaviour could just give you the competitive edge when applying for that next job, a new home loan, or vehicle finance.
The poll revealed almost three quarters (73%) of people did not know what their credit score was. The flash poll also revealed that only 18% knew their credit score, while 9% didn’t know what a credit score referred to.
Maintaining and improving your credit score is somewhat of a science and can be confusing at the best of times. We have highlighted 6 major impacts to assist you in getting and keeping a good credit score.
“Simply put, if you want a good interest rate, you need to have a good credit score,” said Thambiran. “But if your credit score isn’t ideal, understand that there are some basic ways to repair it.”
Maintaining a great credit score or boosting a low credit score, just takes some know-how and diligence. Here is some fantastic insight to assist you.
Insurance companies use credit scores calculated from the same credit reports. The calculations are tweaked a bit but largely reflect your credit situation. Insurers pay attention to your credit report because it’s seen as a predictor of claims — and car insurance companies hate claims.