The Benefits of Having a Good Credit Record

Nowadays, there’s only one must-have essential that all South African consumers need, and it’s not the latest cellphone or laptop – it’s a good credit record…

In today’s economy, you simply can’t underestimate the importance of having a good credit record. Because, ultimately, this is the tool that lenders (such as banks and financial companies) use to determine whether or not to offer you a loan. It’s also the reason why meeting your financial responsibilities has never been more important.

It’s basically a record of your payment history – every payment you’ve made towards: store cards, Telkom, cellphone contract payments. So, if those payments have all been consistently and timeously met, then a good credit record will have been established – which can offer you a variety of benefits:

A good record means that should there come a time where you need additional credit to make a larger-than-usual purchase (like buying a house), you’ll be much more likely to get it. Or in the event that you require a further loan, your good credit record will make the financial services provider you deal with more inclined to offer you an additional loan.

A bad record means that you may have difficulty in getting the credit you need. In fact, failing to meet necessary payments could result Personal Finance Tips India in being blacklisted on the credit bureau. When this happens, you may be unable to get further credit – often for several years.

One of the simplest ways of improving (or establishing) a good record is to always ensure that you meet all your payments, on time, over a period of time. In the event that you find yourself unable to Seek Business Capital Reviews make a payment, don’t just stop paying – rather let your creditor know immediately. More often than not, if a creditor is aware of your problem, they will try and help you work out a payment solution.

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So, to ensure that you’re in a financial position to be granted the credit you need, make sure you always maintain a good payment history and that way you’ll be much more likely to have access to the money you need, when you need it!