The Importance of Knowing Your Credit Score

Although an individual’s credit score serves to represent their credit worthiness, many South Africans do not know their credit score, even though it can give valuable insight. Sometimes it takes applying for credit and being rejected to encourage consumers to check their credit scores, which might hold information they did not see coming. It is especially important to know what your credit score is if you are over-indebted.

Your credit score is a 3 digit number which is used by lenders and banks, to indicate your risk level before they allow you to open an account or lend money. If your credit score is below 550, this is considered a bad credit score, and you will find it difficult to be approved for any loan or store card.  Anything over 650 is good, while a credit score that exceeds 700 is excellent. If you check your credit score, you have a better understanding of your current situation, and can better manage the predicament you find yourself in. You can see what creditors see, and you can start aligning your goals and actions to get out of debt for good.

At Debtco Group, we offer a Debt Review service to consumers who are at the end of their rope with debt and money problems. This solution helps you to pay your debt back legally and affordably, based on your available income. We encourage our clients to stay on top of their financial status and to stay informed when it comes to their credit score – sometimes, details logged inaccurately, human error and incomplete information could lead to a credit score being incorrect. Even the largest credit reporting agencies can make mistakes, and it is up to you to make sure any discrepancies are detected as soon as possible.

We advise individuals to check their credit scores at least once a year. South Africans may check their credit scores at no cost through any credit bureau. The sooner you identify defaults and negative listings on your name, the quicker you can devise a plan –Debt Review is an effective option that can assist you in repaying everything you owe, and also protects you during the process. Don’t wait for your credit score to get so bad that it will take many years to restore. Start working on your problems with debt now with Debt Review.

Stop struggling financially and start planning your way out of the financial problems you’re facing. It starts with finding out what your credit score is, and ends with you finally becoming debt free, working towards clearing your name for good.