15 Aug Good, Bad, or Average? Rating your Credit Score
One way to build confidence in your finances is to know what your credit score means. What lies behind the three numbers on your credit report that have so much significance? Let’s start with a simple first step. Use our FREE CREDIT CHECK to see what exactly your credit score is, in just a few minutes. Don’t worry – our credit check will not affect your credit score at all, it is considered a soft enquiry.
So, how do you know if your score is good, bad, or average? Rating your credit score is simple with our guide, Credit Score 101: A Simple Breakdown. We’ve also outlined the different scores and their meanings below. Remember, your credit score updates frequently (at least once every 45 days).
As a consumer, you should aim to maintain a good credit score – there are many benefits, especially if you plan to apply for new loans, short-term insurance, or life insurance. A good credit score is linked to improved interest rates and better repayment terms. Here is how to check your credit score without harming it.
A Good Credit Score
661 – 780 is what we define as a good credit score in South Africa. If you are able to keep this score up, you should not have difficulty getting approved for loans with decent monthly instalments and interest rates. Wondering how to go from a good score to an excellent score? If you can pay more than your required monthly instalments on your debts, your credit score can improve even faster, and you will benefit even more.
An excellent credit score would be anything between 781 and 850. This credit score can give you more negotiating power when discussing interest rates and monthly repayments for home loans or car loans. Building healthy credit habits can make a positive difference in your life.
An Average Credit Score
If your credit score falls between 610 and 660, most lenders consider it to be average. There is definitely some room for improvement, and you may find that your credit applications take longer and are sometimes rejected. There are many factors impacting your credit score, such as your credit utilisation and how you manage your debts. Staying on track means being informed, and you are taking the first step by reading this article! Make sure you know if your credit score is good, bad, or average – rating your credit score counts! Let Credit Boost help you find balance and restore your credit.
A Bad Credit Score
A bad credit score falls between 500 and 609, and anything under 499 is very bad. Do not ignore a bad credit score – you need to put in the work to see the results you want. Loans and financing become pretty much impossible with a bad credit score, as lenders are required to practice responsible lending. You might be over-indebted, in which case Debt Review can be very beneficial, and is the first real step to credit clearance.
Your credit score will give you a realistic expectation for the outcome of your loan applications. Creditors refer to this score to determine if they will lend you money or approve your submission for a credit card or store card. Boost your credit score today with your credit check!