Your credit score and credit report is the only way your credit providers measure their risk when deciding to take you on as a client. Your credit score and report tells them how you have managed your finances in the past. They will determine from your credit score and report whether to approve or decline your application or whether to increase your credit limit or not.
So many people think their Credit Bureau score is just a number. That it is not an endorsement of you personally. That it doesn’t determine if credit and service providers give you credit or not. So, what the heck, you don’t really have to worry about it or know what it actually is? Right? WRONG! Your credit score is designed to show you by way of the actual number what your strengths and weaknesses are in the credit report. It shows you how your personal credit worthiness compares to other people.
Most credit providers have their own criteria to decide what your credit risk score is for them. But before they make that decision they will use your credit score and report from one of the 3 main credit bureaus Experian, XDS and ITC Transunion as the foundation on which they decide to accept or decline your application.
Your credit score and report alongside your employment record, the income and affordability assessment together with what type of credit you are looking for will all affect the outcome of your credit application.The credit score is calculated by the bureau by using a formula which assesses how well or badly you pay your bills, how many accounts you have and how much debt you are carrying and how that compares to other borrowers and credit consumers. In that single number – your personal credit score – the credit provider can see exactly how you are managing your existing credit. So, it makes sense that the higher the score the better. For Experian and TransUnion for example the score can range from 1 to 999. A poor credit score would be less than 615 and an excellent score between 918 and 999. In between 616 and 917 you can score a rating from fair, to good to very good.All your credit information and credit history will contribute towards the calculation of your personal credit score.Therefore, when you want to apply for credit to buy a new home or car, improve your lifestyle or increase your credit limit, your credit score is a very important guideline that your credit providers use to make their decision.
If you have a poor or fair score this indicates that you have some work to do to improve your credit risk rating. Crediclean.co.za can help you to increase your personal credit score and your credit risk rating. So that your applications are granted and you succeed in achieving your financial goals and chosen way of life.
Your credit score can also show up any mistakes that have been made on your personal report. There may be a problem with the information held in your report. Your credit score and report can show you if you need to investigate and possibly challenge the information in your credit report BEFORE you apply for that all important loan or account.