How to Stop Your Credit Score From Dropping: Quick Tips on Good Habits
Your credit score is a big deal in South Africa. It decides if you can buy a house, get a car loan, open a store account, or even get a cell phone contract.
While it takes a long time to build a good credit score, it can drop very quickly. Here is an easy guide to keeping your score high by managing your accounts correctly.
Always Pay on Time
How you pay your bills is the most important part of your credit score. Missing even one payment on a credit card, clothing account, or loan can hurt your score right away.
Easy Fix: Set up automatic debit orders for your accounts. Make sure you have enough money in your bank on payday so the debit orders don't bounce.
Don’t Max Out Your Cards
Credit bureaus look at how much of your total limit you are using. For example, if your credit card limit is R10,000 and you owe R9,000, you are using 90% of it. The bureaus think this means you are struggling for money, which lowers your score.
Easy Fix: Try to keep your balances below 30% of your limit. If your limit is R10,000, try not to owe more than R3,000 at any time.
Keep Old Accounts Open
It sounds strange, but closing an old account can actually lower your score. Credit bureaus like to see that you have managed an account safely for a long time. Closing it shortens your credit history.
Easy Fix: If you have an old store card or credit card with a good history and no monthly fees, keep it open. Use it once in a while for small items and pay it off immediately to keep your score healthy.
Need Help Fixing or Managing Your Credit Score?
Understanding credit scores can be confusing, but you don't have to do it alone. Whether your score dropped unexpectedly or you just want to improve it, the team at My Credit Repair is here to guide you.
Contact us today for free, professional advice:
📞 Call Us: 0219492211
💬 WhatsApp: 0730118208
✉️ Email: info@libertineconsultants.co.za
