Not only is checking your credit score an indication of your level of responsibility regarding your finances, but a credit score also shows creditors how likely you are to pay them back and what risk factors to consider before giving you credit. So, what is a good credit score?
Your credit score is an amount that can range between 330 and 850, the higher the score, the less risk you represent to creditors. With a number closer to 850 there is a better chance of creditors offering lower rates and special deals, while with a score closer to 330 there is a much greater chance that you will either be hit by higher interest rates or not be able to qualify for credit or loans at all. If your credit score has dipped low, perhaps it is time to rebuild it before looking for more credit.
For the first step to financial freedom perhaps now is a good time to get a free credit score check.
With more stringent policies and review processes coming into being in recent years, creditors are in favour of the higher levels of score brackets. These days a score of 680 is seen as average whereas a few years ago it was considered a great position to be in. With the current divisions, the ideal credit score in South Africa is above 720. Seen as a very good score on the breakdown, this is the level of risk that creditors prefer to take on since the global economic crisis in our recent history.
What is a good credit score in South Africa? Not only taking into account your credit history, your score and creditworthiness are also valued through your payment history, amounts owed, length of credit history, types of credit used and the amount of new credit requested. Credit can be both a ladder and a slide when trying to climb in the financial world.
NDA also offers debt advice, debt rescue and debt management services, including debt review. Fill out our contact form today and one of our well-informed consultants will assist you on your journey to financial freedom.