Tips to manage your credit score wisely
This is according to TransUnion's senior director, Garnet Jensen, who has encouraged consumers to begin the journey of improving their finances and restoring their credit score to full health
KNOWING where your money goes on a daily basis can help shed light on why you’re often left with more month than money.
This is according to TransUnion’s senior director, Garnet Jensen, who has encouraged consumers to begin the journey of improving their finances and restoring their credit score to full health.
‘The holidays are over and your credit card bill and bank statement can no longer be ignored.
‘Saving, investing and the successful management of your money are key to growing your wealth. Prioritising how you secure credit from financial institutions will set you on the right path,’ says Jensen.
‘You’re entitled to access one free credit report per year, which offers a snapshot of your creditworthiness and gives you an indication of where you stand with regard to your debt and ability to access more credit,’ Jensen said.
‘It is therefore important to set goals across days, months and the year, to put your finances in a healthy space to help you achieve your long-term plans.’
Top five tips for getting 2020 off to the perfect start:
Revisit your household budget. A budget allows you to see whether you are living within your means or are over indebted. It provides you with an opportunity to either reduce expenses or increase income where possible.
Save for yourself. Starting small, even with between 5% and 10% of your monthly income still helps. The savings add up over time.
Pay your highest interest debts first. If you can, pay more than the minimum balance owing each month, or you’ll end up paying more interest than you have to. If you are struggling to make payments but you qualify for a personal loan, you may be able to get some relief by consolidating all your debts into a loan with a lower rate.
Get your latest credit report. You can get a free report from TransUnion. Check your report for any mistakes, which might affect your credit score. Once you know your score, you can start taking steps to improve it.
Change your spending habits. TransUnion’s Consumer Credit Index shows that household cash flow in South Africa has been flat for the past three years, and it’s not going to get better any time soon. It’s vital to manage your exposure to credit carefully.
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