Late school fees, underpaying by cents… little things smash your credit profile
A “credit profile” is a measure of how well you manage debts.
Your “credit score” is a quantification of your credit profile.
Credit providers perceive consumers with good credit scores as less risky than those with poor ones.
You are entitled to one free credit profile assessment per year:
Refilwe Moloto interviewed Gerald Mwandiambira, a Certified Financial Planner (CFP) at Sugar Creek Wealth.
Mwandiambira explained what a credit profile is and why it’s important to have a good one.
He also gave the following tips to improve your credit profile:
Manage your current account well. Always have a healthy balance.
Ensure all your debit orders are paid.
Pay more than what you’re contractually obligated to pay.
A credit profile… is a photograph of how well you keep up your payments and how good are you about maintaining your financial contracts… if you’re up to date, slowly over time your credit profile improves…Gerald Mwandiambira, Certified Financial Planner - Sugar Creek Wealth
Little things can negatively affect your credit profile such as being a few days late or paying a few rands short… If your payment is R310.60 and you pay R310, you think the 60 cents doesn’t matter… but it’s deemed a negative report. It affects you the next time you apply for credit…Gerald Mwandiambira, Certified Financial Planner - Sugar Creek Wealth
Credit cards, store cards, vehicle loans, home loans, your medical aid – when you have a medical shortfall, don’t ignore it! … Even things like school fees or study fees… Phone contracts, insurance contracts, how you conduct your current account… Rejected debit orders…Gerald Mwandiambira, Certified Financial Planner - Sugar Creek Wealth
You get 90 days to correct your account…Gerald Mwandiambira, Certified Financial Planner - Sugar Creek Wealth
A court judgment is the worse… It stays with you for 30 years! It’s not going anywhere. Every time you apply for credit it’s going to be sitting there, smiling until you sort it out.Gerald Mwandiambira, Certified Financial Planner - Sugar Creek Wealth
For more detail, listen to the interview in the audio below.
Depressions do not spell the end for investors, says Dr Adrian Saville of Cannon Asset Managers.Read More
The Council for Medical Schemes has directed medical aids to view Covid-19 testing as a Prescribed Minimum Benefit.Read More
Craig Rocher on the criteria you must meet to claim for “home offices expenses” and which expenses are deductible (NOT the phone).Read More
Google services such as Gmail and YouTube don't work on Huawei devices, but there are workarounds, says Jan Vermeulen.Read More
Kieno Kammies interviews Chris Ormrod, owner of Paper Moon Bookshop (there’s one in Muizenberg and Woodstock).Read More
You can now deliver the stuff you advertised on Gumtree, says its General Manger Claire Cobbledick.Read More
"We deal with non-perishable food that is good for many, many years after the 'best before' date," says Dave Bester of Foodeez.Read More
Personal finance experts agree - RSA Retail Savings Bonds is having more than a moment, right now. Your bank simply can't compete.Read More
Bongiwe Kunene (MD, Banking Association SA) carefully and clearly explains the terms of the loan and who may apply.Read More
Distrust anything Covid-19 related that you receive from outside your trusted parameter, warns cybersecurity expert Brian Pinnock.Read More