Credit health is most important

FIVE minutes is all it takes to know your credit status. And according to Kim Meszaros, of staffing company Kelly, it is time well spent, because your credit rating says a lot about you.

For this reason, it is not only financial institutions that conduct a check on all individuals applying for a loan, but many employers also carry out credit checks on job applicants. If your credit health is not as it should be, you could be jeopardising your chances of securing future loans as well as lessening your chances of landing the job you need to pay your bills.

“Companies in certain sectors will not recruit candidates that don’t have a clean bill of credit health. And while this fact provides consumers with peace of mind, it can make the job market a challenging place for those who haven’t managed their credit effectively”, explains Meszaros.

“It goes without saying that this is not a comfortable place to be, which is why the management of your credit rating is so important.”

A good place to start is to conduct a credit health check with a credit bureau, such as TransUnion, Experian or XDS, to get a holistic idea of where you stand. Simply go online to w w w. t r a n s u n i o n . c o . z a , www.experian.co.za or www.xds.co.za and register, and you will be provided with your credit record.

You are entitled to request a credit provider to supply you with one credit report free of charge per year. If you request more than one, you may have to pay a nominal fee – but this is surely worth it when your reputation is at stake.

If you have a good credit rating it’s important to protect this status by managing your repayment obligations carefully. If a problem arises it is advisable to make contact with the relevant institution as soon as possible so that a solution can be found immediately.

“It’s important to note that if a payment is late or missed, this is reported to the credit bureau, tarnishing your financial reputation and impacting negatively on future loan and job applications,” adds Meszaros.

“If you are already mired in debt, all is not lost and you can work your way out of the debt trap. If necessary, engage the services of a debt counsellor to assist you.

“If you have a judgment against your name, it’s important to contact a litigation attorney, but bear in mind the judgment can only be rescinded once the creditor has been settled. If this has been achieved, a special request can be made to creditors to remove the default from your rating.”

Meszaros urges employees and job seekers alike to think before they spend.

“Your shopping habits can have far-reaching consequences that you may not be aware of,” she points out. “If health is wealth, then so too is a clean bill of credit health.”