After receiving your credit report, you may notice that your credit score is low. This could prevent you from obtaining credit for essential items like a house or a car.

Here are a few hints and tips to improve your credit profile:

1. Pay your accounts on time

• Ensure that you pay the full amount due each month
• Keep up to date with each credit payment
• If you cannot pay on time, immediately contact the credit provider to arrange an alternative payment date and check that this has not reflect in your credit payment history
• If it does reflect on your credit history then contact the Credit Bureau to assist you with the matter
• Set up monthly automated debt orders with your bank to ensure you pay on time every month
• Once you have fully paid an account, check that the creditor’s records have been updated and your account’s status reads, “Fully paid”

2. Manage your credit

• If you are behind with payments and receive demands from creditors, ensure you attend to them immediately. Avoiding summons will negatively impact your profile.
• Be cautious with your credit behaviour. Do not apply for more credit, unless it is absolutely crucial. All credit enquiries are recorded in your profile, whether short-term or long-term credit.
• If you are applying for more credit to pay your existing credit you need to find a debt counsellor
• Avoid credit purchases if you cannot afford the repayments

3. Different types of credit

• Your credit profile can be improved by showing that you can handle different kinds of credit
• Having similar loans and/or credit will not improve your credit profile

4. Negative information

• When you apply for credit, ensure you provide the correct information
• Ensure you review your profile half-yearly or yearly to detect and rectify any errors
• Update your personal information and keep it secure to avoid identity theft
• If there are negative and/or incorrect details on your credit report, ensure that a dispute letter is given to the credit provider and rectified on your profile by the credit bureau

Sources: Credit Expert