Is Your Credit Profile Having a Negative Effect on You?

All individuals who live in South Africa, have a credit profile and it’s essential to know what effects it. Your credit profile provides information to businesses, banks, as well as certain institutions, such as creditors, to review your credit history, which ultimately helps them make the decision whether they provide you with the credit or not.

Most businesses request access to your credit profile when considering you for a possible job position. A credit profile that is not up to standard, could thus very well hurt your chances of even getting a job.

What is a credit report and why do you need it?

Credit reports refer to any information that is presented on your credit profile. Businesses are known for generally reviewing it, as this allows them to gain more insight as per your financial habits, as well as your history. After they’ve reviewed your credit report, institutions that offer you loans or credit, will also be able to come to a decision on whether they can trust you to pay it back, should they loan it to you.

A credit profile can affect you in various ways. Another major way it can affect you is your place of residency. Back in the day, it used to only be either banks or retail stores who found it necessary to view your credit profile, yet now, even landlords, insurers and employers can view it. To make matters worse, they even use it to determine whether you can either move into their rental, get insurance or even the job you’ve applied for.

Having a good credit profile could aid in your benefit, as it will allow you to negotiate far better interest rates if you’re loaning money from banks, or any other financial institution.

The importance of Keeping your credit report clean

By now, you should understand the importance of keeping your credit record clean, here are some helpful tips for keeping it clean.

  • Don’t buy on credit, unless you are completely certain that you can afford the monthly installments.
  • Pay your full installment each month.
  • Don’t ignore letters or payment notices. If you are struggling to pay your debt, rather write a letter or call your creditors, to make proper arrangements, to settle your debt.
  • Make payments to your creditors, even if you don’t receive a statement for it.

Get debt counselling help and debt review solutions from Credit Matters. Call us today! 086 111 6197