Topics, Tips & Tools / Personal Finance

Why having a good credit record is worth your while [Video]

29 June 2016

Our Dream to Drive winner, Mrs Manganye paid on time and won a Hyundai i20!

A good credit record is the most reliable way for a creditor to assess whether a potential customer is a reliable payer. For this reason, building and maintaining a good credit record has a positive impact on your ability to acquire credit, a bond or car finance.Our Dream to Drive competition was launched to reward good payment habits.

We launched the competition to encourage customers to develop a healthy attitude towards managing their accounts. To gain entry into the competition and to stand a chance to win a Hyundai i20 our customers were required to stick to their payment plans by paying their loan repayments on time.

The draw took place on 15 April 2015, and the lucky winner Mrs Monganye a social worker from Mpumalanga, who took out a Loan to build a house and later for home improvements, was presented with her prize at our office in Cape Town.

A good credit record is beneficial in more ways than one…

Your credit score is an important part of your financial profile. It is what helps banks, finance companies and other credit providers decide if they should lend you money.

You’ll have a better chance of approval

When you have a good credit record, it doesn’t guarantee that you’ll secure finance, but you’ll certainly have a better chance than if your credit history is bad.

You’ll have negotiating power

With a good credit record you can shop around to find the best offer you can possibly get. So, if a company makes an offer that you’re not satisfied with, you could negotiate for a better deal.

You’ll be a favoured rental prospect

A good credit record will instantly be regarded as a good rental prospect. So, if you apply for a rental property, make sure your credit record is in good standing because if it is you could be on top of the list.

You can improve your record by remaining disciplined and focused. Meet your monthly repayments on time. Always pay the minimum instalment required, close accounts you don’t use and, if you can’t make payment, inform the creditors. Start by drawing up a budget and stick to it. Remember, it pays to pay up and pay on time.