Your credit history can have a big impact on the cost of borrowing money and the options available to you. It is a bit like an ongoing school report that chronicles your financial behaviour!
Your credit history also looks at your current debt and a number of other factors. Always remember it’s easier to harm your credit rating than to improve it - prevention is always better than cure. However, there are several things you can do to improve if you have a low credit score.
Most lenders use some form of credit checking to assess your application for a loan, so ensure you do everything you can to protect your credit rating. If you are having problems getting credit, it’s worth visiting a credit bureau to find out more about your credit rating and how you can improve it. The two top agencies in South Africa are TransUnion and Experian.
If you love money management and get a kick from staying on top of your finances, or if you are a novice in personal finance and want to learn the ropes, try drawing up a budget for yourself, and see if you’re able to stick to it. You might even find you’re able to start saving up for something special. However, if you feel overwhelmed by the stress of debt, Wonga also offers direction to those seeking debt help.