THE COVID-19 pandemic has had a dramatic effect on the South African economy, which has left many people in debt. However, being responsible with credit can prevent people from living beyond their means, and can also be beneficial when wanting to apply for finance.
Eloise Boezak, head of customer experience at African Bank, says that many South Africans pay little attention to their credit score until it is too late. It is concerning to see that only 9% of the 25 million credit-active South Africans, access their credit report annually.
A credit score is a three-digit number created by a credit bureau to explain your credit behaviour, calculated using information received from credit and service providers. Using a formula, this number is calculated based on how well you pay your accounts.
Basically, good credit profiles are gained when you borrow money and pay it back regularly, on time, and for the full amount.
A credit report is a record of your credit history and payment behaviour that is maintained by credit bureaus. It is important that consumers look at the accuracy of their credit reports.
All consumers are entitled to a free credit report every 12 months from any credit bureau in South Africa.
During Money Smart Week South Africa (MSWSA), a financial literacy initiative held in March each year, the topic of credit and good credit history was addressed by several organisations and industry bodies in 2021. Go to https://mswsa.co.za/2021-event-videos/.
Credit and a growing economy
Bu hikaye Personal Finance dergisinin March 2022 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Personal Finance dergisinin March 2022 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
'Hack' your money psychology
Spending too much money? Tempted by sales? These money psychology hacks’ can help
Accounting tips for small businesses
It's important to properly manage your business finances
KIDS AND MONEY: FIVE WAYS TO START THE CONVERSATION
WHEN IT comes to teaching young children about the world, parents may feel that some topics—like politics and religion—are too tough to broach.
REDUCE THE PAIN OF DOWNSCALING
Investing in a holiday home as a retiree
THE RISKS INVOLVED IN INVESTING
Finding the balance between eating well and sleeping well
TESLA: WHY IT MIGHT BE TIME FOR MUSK TO GO
What 2023 holds for the electric vehicle company
FINDING SOMEONE TO STEP INTO YOUR SHOES
The Eskom crisis demonstrates again the importance of proper succession planning—loDSA
BORROWING MONEY ISN' ALWAYS A BAD THING
On the contrary, debt can be a sensible way to build wealth
WILL SOLAR POWER INCREASE THE VALUE OF YOUR HOME?
The upfront investment is high, which you'll want to recover when you sell
WHERE NEXT FOR THE GLOBAL ECONOMY?
Why central banks face an epic battle against inflation in 2023