There are many benefits to having a good credit score, such as enjoying a lower interest rate on your credit cards and loans, which is essential to build and maintain your financial health. The more you know about what goes into your credit score, the easier it will be to maintain a good one.
How is your credit score calculated? These five key pieces of information are used to calculate your credit score: your payment history, level of debt, credit age, mix of credit, and recent credit. Some things do not affect your credit score. These include: checking account overdrafts and utility payments.
Which pieces of information have an impact on your credit score? While certain bills are not reported to the credit bureaus when you pay on time, they could end up on your credit report if you fall behind. Thus, continue to pay all your bills on time to maintain a good credit score. Also note that the higher your credit card balance in relation to your credit limit, the worse your credit score will be.
Loan balances affect your level of debt. Having too much debt can cost you points on your credit score. The lower your debt, the easier it will be to maintain a good credit score. Thus, make sure that you pay all your bills on time.
Iemas could assist you with maintaining a good credit score. Iemas has agreements with more than 600 employers in South Africa, which allow us to offer their respective employees a range of comprehensive financial products and services, including unsecured loans, vehicle finance, housing solutions, a purchase card and comprehensive insurance solutions offered through Iemas Insurance Brokers, authorised financial services provider (FSP 47563) and wholly owned subsidiary of Iemas Financial Services.
The agreement Iemas has with the employer further allows for one consolidated monthly repayment via salary deduction. This results in reduced bank charges and ensures that payments are not missed – helping you to maintain a good credit score. Contact us to find out more on: 0861 043 627 or visit: Iemas Financial Services
Adapted from: https://www.thebalance.com/maintain-good-credit-score-960513