Take Control of Your Family’s Future: Improve Your Credit Score

by BabyYumYum
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Take Control of Your Family’s Future: Improve Your Credit Score
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With rising living expenses, there’s never been a better time to regain control of your finances. One key way to do this is by understanding and improving your credit score, explains Ayanda Ndimande, Business Development Manager: Retail Credit at Sanlam.

What is a Credit Score?

If you have debt, you likely have a credit score. This score evaluates your debt repayment behaviour and reflects how much of a ‘risk’ you pose to potential creditors. Factors influencing your score include your total debt, repayment history (including late or missed payments), types of credit applied for, and how much of your credit limit you use.

Why Does Your Credit Score Matter?

A poor credit score can have significant consequences:

  • Access to credit: High-risk scores reduce the likelihood of obtaining credit.
  • Interest rates: You may face higher interest rates on credit agreements you qualify for.
  • Schooling prospects: Some schools may consider your credit score during background checks, potentially impacting your child’s education.

Steps to Improve Your Credit Score

  1. Pay Off Debt on Time
    Regular, timely debt repayments are crucial. Always prioritise essential credit, such as home or car loans, and avoid unnecessary borrowing. If you’re comfortable, consider working with a financial planner or coach to create a stable financial plan.

  2. Consolidate Your Debt
    Debt consolidation involves taking out a single loan to pay off multiple high-interest debts. This simplifies repayment by combining your obligations into one, often lower, monthly instalment. Ensure you work with a reputable credit provider.

  3. Check and Dispute Errors
    Regularly review your credit report for inaccuracies. If you identify any discrepancies, lodge a dispute with the help of a Sanlam Credit Solutions (SCS) Credit Management Coach.

Activate Your Sanlam Credit Solutions Dashboard

Sanlam’s Credit Solutions dashboard provides free access to a personal credit management coach who will guide you in improving your credit score and stabilising your financial future. Register with your ID number to view your credit profile securely and confidentially.

Need Help?

Contact Sanlam for expert assistance.

Take charge of your finances today to secure a brighter future for your family.

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