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3 Tips for Monitoring Your Credit Score Effectively – Our Guide

December 09, 2020
Credit Score

Your credit score is more than just a number. It dictates your financial health and shows how your credit standing compares with others. Whether you are obtaining a credit card, a mortgage, a home, or a car, these numbers have the power to determine whether you are creditworthy or not.

Having a bad credit score due to missed payments is recorded against your credit history. If you have a low or bad credit score, a loan for a car or a house, a mortgage, or one of the zero percent finance deals won’t be available to you. 

Remember, every responsible lender will use the information from the credit agencies to determine whether they allow you to borrow money from them. This is important because you may encounter emergencies and other situations when you need a short-term loan. If you have a bad credit score, you will be denied access to any kind of finance. To prevent this, you have to monitor your credit score and understand how it works. Here are some useful tips to do it:

 

  • Close your unused accounts

 

Lenders take a look at how much credit is available to you, and this can affect your credit score. Therefore, if you have a lot of credit cards but don’t actually use them all, it’s best to close your unused accounts. In addition, pay your utility bills on time to avoid your missed or late payments being recorded on your credit history for six years.

 

  • Ask for a quotation search

 

Before applying for credit, keep in mind that a refusal and an application for lots of credits at one go will be recorded with the credit agencies and can lower your score. To find out more about the best rates on credit cards without actually applying, ask for a quotation search or soft search instead of a credit search. Lenders know that these are not actually credit applications, so you don’t have to worry about your credit score being impacted negatively.

 

  • Avoid overstretching yourself with payments

 

Not having too much credit is as bad as having none at all. Lenders determine a good risk and those who are likely to default on payments. Avoid overstretching yourself with payments because they will be wary of giving you any more credit.

Can I Still Apply for Loans Even If I Have a Bad Credit Record?

If your credit record has been bad, you still have a chance to get your loans approved. We offer online loan approval in South Africa, and we can help you get payday loans within the day. We have a wide range of lenders who can assist people from all walks of life and with different credit scores and profiles. 

Conclusion

Monitoring your credit score by following the tips mentioned in this guide can help you increase your chance of approval when applying for credit. On the other hand, if you are worried about failing to obtain a loan due to a bad credit record, look for a company like ours that can assist you with having your loan application approved immediately.

Secure online loans in Africa with flexible payment terms and competitive interest rates. Contact us to apply now!