“Failing to plan is planning to fail, and arriving at your credit provider without a credit score is going to lead to time lost. Applying for a loan with a bad credit record is no game either.”
People with bad credit scores (the people in debt) are the people in need of favourable terms and conditions from credit providers. Ironically, the amount of support from credit providers decreases as your credit score decreases.
Here follows 3 ways to acquire and maybe even improve your credit score.
Opening an account with your favourite clothing store can be a good idea.
Many credit providers and even network providers require at least 3 month’s worth of credit record before they consider doing any business with you. Keep shopping at that store at your usual rate, but use the account to buy your goods on credit. Then settle the account with the cash you would have spent in the first place. This means no pesky interest rates on usable goods like clothes and your credit score will reflect diligent payment of credit.
A student credit card supplies a good opportunity to start a credit record.
A few banks in South Africa have this option available to student account holders. A student credit card usually has a limit to the amount of credit allowed on the card. This helps toward the stewarding of healthy credit.
Overall healthy credit habits are probably the best ways to ensure a great credit record.
Settle debt in the time frame agreed upon with credit providers. If possible, pay instalments larger than the minimum amount required. Pay bills on time. Keep balances low on credit cards. Should it be that your financial situation is forcing you to shift debt from one account to another, it is probably better to consolidate your debt and to repay it with one interest rate and one instalment per month.
In the blink of an eye - no credit provider will be able to resist your credit score! Know when to say no and you’ll keep that positive credit score rolling through the years.