13 Mar Credit Score Tips After Debt Relief
Once you have overcome your debts and improved your finances, you can begin working on rebuilding your credit profile. These are all efforts that will pay off in the end – creditworthiness plays a massive role in how you attain credit, and a good credit score opens up doors to new possibilities. At True North Debt, we assist South African consumers with a legal way to reduce debt repayments and become debt-free.
Whether you have sought debt relief through consolidation, settlement, or the debt counselling process, the next best thing to do is rebuild your credit score. Here are some credit score tips after debt relief, to help you get on track:
Keep Track of your Credit Score
To maintain your credit score, you need to keep track of it consistently. After completing debt review, we recommend that you access your credit report and look over it at least every 3 to 4 months for the first year. This way, you can track your growth and check for inaccuracies that can be promptly addressed.
South Africans are entitled to one free credit report per year from each of the major credit bureaus, namely TransUnion, Experian, Compuscan, and XDS (Xpert Decision Systems) – this is just another way that the National Credit Act protects you.
Prioritise On-Time Payments
The biggest factor that influences your credit score is your payment history. One of our most vital credit score tips after debt relief is to ensure payments to creditors are made on time, every time, without exception. The best way to achieve this is by setting up debit orders for as many accounts as possible, eliminating the risk of forgetting.
One missed payment may not seem like a big deal at the time, but it can potentially set you back many months. Consistency is key to rebuilding your creditworthiness, and our True North Debt team have valuable insight on how to stay financially fit.
Carefully Approach New Credit
Once you have been issued your credit clearance certificate after debt review, you can start accessing credit once more. This time, start small and always let your budget guide you. You have put in all the effort and time to overcome your debt problems, and you should keep this in mind going forward. Keep your credit utilisation low (ideally under 30%), and avoid applying for too many loans and accounts in a short time frame, as this can affect your credit score.
CONTACT US today and let True North Debt assist you with debt review for successful outcomes, and guide you towards credit score restoration. Here are some of the signs you’re eligible for debt counselling.