How high is your score?

Your credit score is typically a number from zero to 999, calculated by using the details on your credit profile. A score of 767 to 999 is excellent, 583 to 613 is average, 487 to 526 is unfavourable and what follows thereafter is poor.

What influences your credit score?

Missing payments or not paying on time. Even if you make double payment the following month, the score will affect your credit history; Too much debt – how much you owe and how much of your available credit you’re using; Negative information like a court judgment taken against a consumer’s name; and Account application and enquiry activity – how many account applications you submitted within a short period and how many new accounts you opened.

Why is my credit score lower than I expected?

A credit history of fewer than six years; Holding very few credit accounts: there will be less credit history available; Having a lot of unused credit available could lead to a large balance of debt if you used it all at once; and Balances on your accounts that are very close to the credit limit indicate that you rely on credit to get through each month.

How can I improve my credit score?

Regularly checking your credit report to confirm all the details are correct; Ensuring you make payments on any outstanding credit accounts on the due date; Consider setting up regular automated payments; If you have too many old, unused credit accounts, consider closing them; If you’re almost reaching your credit limit on one or more accounts, try reduce your balance. Outstanding balances mean you have a lot of outstanding debt in your name.

How long does it take to improve your credit score?

It depends on how long it takes to improve areas that need attention and maintain them.

Real improvement will start showing after three months of consistency.

Credit inquiries stay on your credit report for up to two years, whereas more serious activities that incur, namely late payments, lawsuits, bankruptcy and tax liens will stay on your credit record for up to 10 years.

To build up a credit score if you don’t have debt, you can apply for financial products. These include a credit card, car finance, phone contract or clothing accounts.

To check your score, visit www. fincheck.co.za and sign up for the MyFincheck Credit Score Tool.