• Property In Demand
  • July 14, 2017

If you have applied for any of the following:

-A credit card

-A personal or business loan

-A phone, utility or internet plan

Then you will have a credit file.

It is a report that contains information about your borrowing history and will list any overdue debt and defaults, as well as all applications and pre-approved applications for loans.

This information contributes to your credit rating or score. Your rating is available for you to check online.

Lenders also have access to your report and use your rating to help them determine whether or not to lend you money.

If you have applied for a loan or credit card and your application was denied, chances are you have a poor rating.

This is why is very important to ensure your rating is as high as possible – a rating of 800-1200 is considered excellent.

The following are three tips to help you keep your score high:

Pay your bills on time

This includes all mobile phone plans, internet and utility bills, as well as loan and credit card repayments. If you have trouble remembering, try setting up a direct debit transfer from your savings account.

Only apply for credit cards or loans when you really need them

Banks will often send out a deal on a no-fee, 0% interest credit card for the first year. They may even offer reward points for signing up too. Many people will take the offer even though they don’t need it, and at the end of the year, cancel the card. What many consumers are unaware of is, every time you open and close a credit card account, that goes into your file and can adversely affect your score.

Regularly check your file

By checking your file regularly, you’ll be aware of how good or how bad you have been making payments. That way, there will be no surprises when you go to apply for a loan.

If you believe any of the information found in your report is incorrect, you must take action and contact the relevant companies to have this corrected. Furthermore, if you believe you are the victim of identity fraud due to discrepancies in your report, you must contact the police immediately and all of your credit providers’ fraud investigation departments.

A good rating can be one of your biggest advantages when it comes to getting ahead with your financial investments. Be aware of your rating at all times.