How to improve your credit score (And see which Mondo deal you’re approved for before applying.)
Staff Writer / 10-02-2020 / News
Before approving or declining your application for any Mondo deal, our partner networks (MTN, Vodacom or Telkom) will assess your credit score in order to give you a deal that’s within your affordability range. This means, consumers with a good credit score stand a better chance of being approved as they are more likely to afford the monthly payments.
How your credit score is calculated?
Your final credit score considers a few things: how you pay your bills, how much debt you have, if there any judgements against your name and, most importantly, how you compare to other active credit consumers. However, your credit score is not an endorsement or a criticism of you or your credit behaviour, nor does it determine whether you qualify for credit. Those factors depend on the credit provider’s own credit-approval criteria.
Here are some ways you can boost your credit score:
Grab your free credit report from ClearScore.com and identify which accounts are not up to date. Ensure that you make the full instalments on the due date, every single month.
Make sure that you’re paying other contract-based clients, such as DSTV, the gym or short-term insurance, on time. You need to prove that you are able to service other contract-based creditors.
Try to keep your current credit facilities to less than 35% of your limit. For example, if you have a credit card or a store account with a limit of R1 000, try to maintain the amount owing balance at under R350.
Regularly check your credit report for any negative information against your name (judgements or court orders) and take active steps to pay all your outstanding debts in full so or arrange to make smaller but manageable payments.
Maintain a good mix of credit – store accounts, credit cards, home loans, cell phone accounts – to help you establish a strong credit history.
Try not to apply for too much for credit in a short space of time. Too many simultaneous applications could indicate that there has been a significant change in your financial circumstances and could negatively impact your credit profile.
Finally, check your credit report and your credit score regularly.
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