FinanceX

While many people think that credit score tips are too obvious to be discussed, the fact is that many South Africans are ignoring the basics and letting their credit scores take a bad fall. This results in a spiral of debt and bankruptcy, and individuals have no one to blame but themselves.

To avoid being blacklisted, you should consider the following tips:

• Don’t underestimate the power of a regular paycheque. Sure, self employment has immense financial potentials, but don’t forget that risk is the trade off for higher returns. Opting for self employment has risks and one of them includes lean periods.
• Don’t be greedy when it comes to borrowing. Credit is a blessing, but splurging with someone elses money is sure to bite you back. Work out a realistic credit limit that is preferably on the conservative side and stick to it religiously. Also, try to use cash wherever possible.
• This one comes in line with the above tip. The key is to save as much as possible by reducing fixed expenditure such as interest payments and rent. It will help boost credit scores in the long run.
• If possible, opt for direct deposit for bill payments. This is to reduce the possibility of defaults, especially on mortgage or vehicle financing.