Publish Date: 07/03/2019
This is how credit scores work
Your credit record affects almost every major milestone in your life. If you’re wanting to buy a house, a new car using credit, or even get a phone contract - you’ll need a healthy credit score. This score is what creditors use to evaluate whether it’s safe or risky to provide you with credit. What makes up your credit score? Only the credit bureaus know the formula.
The good news is, they have made the basic factors used to calculate credit scores available. Knowing and understanding each of these will help you make better financial decisions when taking, using and managing credit. And if you’re deep in debt, knowing these will help you improve credit score. We share some of the factors affecting your credit score in this blog.
The 6 credit score factors that matter most
Here are the 6 factors that make up your credit score. Understanding these will help you achieve a healthy credit score:
What doesn’t affect your credit score?
If you’re looking to buy a house or car, or get a loan in the near future, focus on these factors. Then, focus your credit-building efforts on making your payments on time and keeping debt balances low.
You can check your credit report for free every year through one of several Credit Bureaus such as:
About African Bank
Our mission is to be a successful Retail Bank offering a wide range of products and services to the consumers of South Africa. The people who work for African Bank represent the diverse population of South Africa; therefore we are a reflection of you, of all South Africans. We seek to provide value - more than our consumers expect of us. We promise to live our purpose 'humanity through banking' in all that we do and we are confident that we can, because 'We are You'.