How to Put Your Credit Score on The Right Track – Personal Loans in South Africa GuideJul 18, 2019
In this day and age, it’s not easy to get away without debt. Chances are you have to make monthly payments on an auto loan, a credit card, or your mortgage. You may even have some payday or personal loans to settle. As debts are inevitable, you shouldn’t neglect your credit report. A good credit history will make a difference in your financial well-being and affect your future investments.
However, maintaining a good credit report isn’t a walk in the park. It entails a stable source of income, deliberate financial tracking, and discipline. In the next section, we will talk about how you can ensure your credit report is on the right track.
Try to pay on time
When it comes to maintaining good credit standing, the best way to do so is to pay your debts on time. This means that you should know when they’re due. Track your monthly income and come up with a breakdown of your expenses. Set a reminder so you won’t forget about any of the payments you need to make.
If you have a stable income, one way to ensure that you will be able to pay your debts on time is to set up an auto-recurring payment. In this way, the payment will automatically be debited from your bank account on a specific date. Now, if your salary isn’t consistent, you should be aware of the grace period. The good thing about most loans is that you will be given ample time to pay before you will be considered delinquent and reported negatively to the credit bureaus. If worse comes to worst, you can resort to payment arrangements.
Dispute any errors
Another wise thing to do is to check your credit report on a regular basis. You need to understand that what’s reflected on your credit report are valid. But that’s not always the case. Chances are there might be possible errors reported by financial institutions or lenders that you transacted with, or the credit bureaus might have tracked your financial records incorrectly for some reason.
If you’re confronted with such circumstances, then you can go ahead and file a dispute directly to the credit bureaus or to the lenders who made the financial report. Individuals have the right to do so. It’s best to do it in writing. Make sure you can back up your case with documentation, such as financial records.
Pay off your debts before incurring a new one
Finally, as a rule of thumb, don’t obtain a new debt if you still haven’t paid off your old ones. You should only do so if there’s an emergency. It’s best to pay off one loan first before taking another one out.
Many make the mistake of obtaining many loans, only to get in trouble when they aren’t able to pay anymore. Instead of eliminating debts first, they create more. It has become a bad habit with many financial repercussions.
Dealing with debts is one thing. Maintaining a good credit standing is another. It takes financial discipline to be able to maintain a good credit record. You need to work hard to make sure that your credit record is always on the right track. All the best to you and your finances!
If you’re looking to take out a personal loan in South Africa, Hoopla Loans is your best option. Get in touch with us today to see how we can help.