Did you know that you have the right to one free credit report per year? Once a year, you have the right to obtain a credit report from any of the credit bureaus in South Africa.
A credit report is a summary of your financial background, and includes your credit score which is an indication of your financial decisions. When applying for a loan on a vehicle or any other big purchase, banks and other financial institutions who are the money-lenders, will use this credit score as part of their decision on whether to approve your loan or not.
As mentioned in our credit score guide, there are several factors that influence your credit score. Essentially, to determine your score, there are five major categories of calculation to determine your credit score:
Credit to debt ratio
New credit or credit enquiries
How Do Credit Bureaus Calculate Your Credit Score?
Credit bureaus have their own methods of calculating credit scores since there is no a standard way. Therefore, your score can differ from one credit bureau to another.
These are some main areas that they place importance on:
Your purchasing behaviour and how much debt you have incurred
How you compare to other consumers
Free Online Credit Score Checks
While obtaining your credit score is important, it’s something you won’t be able to calculate yourself. Only the credit bureaus know the formula, but you can get your credit score calculated online for free.
Key information you’ll need to provide is your South African identity number, employment status, and monthly income. Try one or more of the following sites:
Get a comprehensive overview of your credit information and detailed credit history. See your current credit score, what is going on with your accounts, and any defaults and judgments against you on gocreditreports.co.za
Get a free credit report and credit score on financeman.co.za
Sign up and receive your credit history, current payments and balances, alerts, and credit score through one user-friendly dashboard on mycreditcheck.co.za
An updated/ once-off view of your TransUnion Credit Report and displays any adverse court action taken against you on transunion.co.za
Check your credit score and get tips to improve it on clearscore.co.za
mycreditstatus.co.za is not a free service but for those who want to improve their score, they offer a membership subscription and money-back guarantee.
Note: We have not tested and are not recommending any of these sites but merely providing you with a shortlist as a starting point.
Remember that you’re aiming for a higher score. Between 600 – 619 puts you in the middle ground, and you should try and increase your score to a minimum of 620. For more information on credit score ranges read our guide to credit scores.
If you’re looking for vehicle finance, Auto Pedigree has arrangements with all major banks in South Africa. Applying is easy, just fill in the finance application form in a few easy steps.
Disclaimer: This information is for educational, or entertainment purposes only. It must not be construed as advice, legal, financial, or otherwise. We do not make any warranties about the completeness, reliability, and accuracy of this information. The views and opinions are those of the author and not necessarily those of Auto Pedigree.