How to Improve Your Credit Scores & Get a Mobile Contract
Staff Writer / 14-11-2019 / News Tips
Before approving or declining your application for credit, credit providers will study your credit score to measure the risk in taking you on as a client. When mobile networks offer cell phone contracts, only consumers who have a good credit standing and are able to afford the monthly payment for the duration of the contract are considered.
Your credit score is calculated by a credit bureau, and while it is based on your credit report, it also takes into account how you pay your bills, how much debt you have and, most importantly, how you compare to other active credit consumers. Your credit score is not an endorsement or a criticism of you or your credit behaviour, nor does it determine whether or not 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:
Look at your credit report and identify which accounts you’re not up to date with. 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. There are many options to access your credit report for free.
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