What Factors Affect A Credit Score?

By Dave Nyam •  Updated: 01/11/24 •  5 min read

Loans and other personal credits rely highly on credit rating, an arithmetical rendering of one’s creditworthiness. In South Africa, a rating beyond 680 is mainly marked as good, and the scale is from 330 to 830.

How is this score determined, then? Your payment history, total debt, account kinds, account number, account age, and total account balance are the main factors determining this.

Everything that may have an effect on your South African credit rating is going to be discussed deeply in this writing. How to boost your credit rating, why it may be low despite prompt payments, and what to do if you wish to maintain it that way are all subjects we’ll discuss. Let’s begin!

What Factors Affect A Credit Score?

The models used by TransUnion, Experian, or Compuscan credit bureaus differ when rating your score. However, they generally consider the following:

How To Boost Your Credit Score?

Aiming to give that credit rating an uplift? Below is how you may achieve that:

Why Is My Credit Rating Low, And I Have Never Missed A Payment?

You may think that – having your loans cleared on time can make your credit rating appear good. But there are more details that add an impact other than that. There are other elements that may force your rating down, even if you’ve never delayed a payment. Below are some popular reasons why your credit rating can be low:

How To Avoid Ruining A Credit Score?

Your rating is identical to a financial passport, which may unlock (or lock) doors to varied opportunities. Below are pivotal tricks to keep it in excellent shape:

What Is A Good ClearScore Score?

Your ClearScore is like a snapshot of your creditworthiness and reliability as a borrower but in three digits. It is worked out by Experian, which is one of the big 4 credit bureaux South Africa boasts. Your ClearScore score can be between 0 and 740, wherein 740 is top of class. If it is a score closer to 700 or more, one has a better chance of getting approved for business loans, credit cards, and mortgages. Of course, a higher score can also bag you better interest rates and deals on credit. According to the people at ClearScore, anything between 531 and 670 is considered good. That means you’ve got a positive and diverse credit history, and you’re managing your credit responsibly and living within your means.

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