Three steps to help you improve your credit score

Struggling to get a bond or loan approved? Learn how to optimise your credit score.

The low interest rate has been a massive drawcard for anyone who is interested in starting or expanding their property portfolio. Before you get excited about buying a home or an investment apartment, make sure your credit score is favourable and won’t get in the way of getting that all-important bond approval. African Bank gives us some tips on how to make your credit score as attractive as possible:

  1. Find out your status: Your credit score shows financial institutions how reliable you are with monthly payments and how responsible you are with your money. This helps them determine how risky it is to give you a loan. Ask your bank or financial advisor to give you access to your free credit report and make sure the information is accurate.
  2. Up your score: The higher your credit score, the better. To up your score, make sure to pay your accounts on time (set up debit orders so that you don’t have to remember those monthly payments) and pay off your debt timeously and consistently. Defaulting on monthly repayments is an absolute no-no for your credit score.
  3. Budget, budget, budget: Set up a monthly budget and track it to make sure you are on target. Be strict about saving a certain amount every month to ensure you have a safety net in case of emergencies and don’t need to take out another loan to pay for unexpected bills.

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