5 Reasons Why You Must Know Your Credit Score
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1. Employers Will Check Your Credit Score
Employers will almost certainly do a credit score check on any new job applicant.
You certainly do not want your potential employer thinking that your personal finances are in a mess and that you’re always in debt.
You’ll almost surely be seen as a liability & a risky appointment and, needless to say, won’t get the job.
Rather maintain a high credit score and impress them with how responsible you are at managing your personal finances.
Even your current employer could be interested in your credit score to monitor these issues especially if you’re working in the financial services sector.
This is why it’s important to know your credit score and try to increase it whenever you can.
2. Better Interest Rates On Loans
If you’re planning to apply for a personal loans or additional credit, a good credit score means you’ll get your loan approved at a lower interest rate.
Not only will this save you money, but having a poor credit score will mean you’ll pay more in interest if you get the loan at all.
Whilst this may not make a big difference on small loans, but on a home loan, for example, it will make a massive difference getting it approved at a low interest rate.
Therefore, it will pay you to get a free credit score check here, before applying for credit.
3. A Credit Score Check Can Alert You To Identity Theft
Nobody thinks they’ll ever be a victim of identity theft until they can’t get credit and see their credit score has suddenly plummeted.
That sounds bad enough, but you could find that you’re liable for a whole lot of new accounts that you know nothing about.
If you’re on top of your finances and know your credit score, you can catch it early without it causing you too much damage.
Therefore, get your free credit score check done annually at least to avoid this potentially damaging situation.
4. Your Loan Application Was Declined
If your application for finance, credit or for a personal loan was declined, you’re allowed to see a copy of the report from the bureau they used.
Therefore, if the bank requested your records from Transunion, you are entitled to examine your free Transunion credit report that was used to evaluate your credit score.
Inspecting your report will help you understand why your application was declined.
By doing a thorough credit score check, you will be able to identify the issues that prevented you from getting finance.
For instance it could’ve been that you have too many existing accounts and that you’re over indebted.
Therefore, it will pay you to get your free Clearscore coza, Transunion or Experion credit check that will identify errors that you could rectify to improve your credit score and financial health.
5. Pick Up Easy To Fix Errors
By getting a regular credit score check you’ll be able to pick up errors that are damaging your score.
As an example, you may find that a delinquency was reported in error and by rectifying this your credit score could increase dramatically.
Furthermore, you will find that these errors are often easily fixed and will increase your credit score without much effort giving you the benefits above.
Final Thoughts On Getting a Credit Score Check
Whilst your report from any of the credit bureaus like reports contain a lot of information, it’s really important to scrutinise each line carefully.
Checking that account balances are correct may seem trivial but incorrect amounts could increase your credit utilisation ratio and consequently lower your score.
You can therefore, never be too careful, so it makes good financial sense to do a credit score check at least once a year.
Lastly, What Is a Good Credit Score In South Africa?
In South Africa, a consumer’s credit score can range from 300 to 850.
The higher the score, the better.
Furthermore, a credit score higher than 700 is deemed to be a good score which will give you access to easy credit, usually at preferential interest rates.
A score above 767 is excellent and demonstrate to banks that you’re a low risk client to whom they would be more than willing to provide credit.