Your credit score may be your gateway to financial freedom and most importantly access to immediate cash. Credit score plays a critical role in any form of lending whether business or personal. Lenders use a credit score to determine whether or not you will be able to meet your future obligations. So, you cannot in any way neglect your credit score.
Should you want to someday take out any type of a loan, your credit score will determine your annual interest rate. The lower your credit score, the higher the amount of interest you are going to pay. Keeping a healthy credit score will earn you better interest rates. When you are looking at saving in interests on long-term and short term loans you have no choice but to keep a very good credit score.
For better financial leverage you will need to maintain an excellent credit score. An excellent credit score will depend on the credit bureau that you are using. For example, according to Transunion, a very good credit score is the one that is between 918-999. With a credit score within the very good range, you will qualify for any loan at discounted interest rates. This is, however, subject to how much your business makes per year or how much income you earn.
Since your credit score is this important you will need to keep track of it by monitoring it regularly. Credit bureaus charge a fee for you to view your credit score. What you should know is that you have a right to a free credit report each year. You can access your credit profile by signing up with one of these credit bureaus Consumer Profile Bureaus (CPB), Experian, TransUnion, VeriCred and Xpert Decision System (XDS).
About Free credit score
Your credit report won’t have your credit score but only your credit record so you still need to know your credit score. The good news is that you can get a free credit score in South Africa. From this article, you will learn of ways to access your credit score and report for free in South Africa.
Using a number of websites you can access your credit score at no charge and get extra services. What most free credit score providers do is that they give you value-added services to enhance your user experience. That is, they give you an analysis of your credit score and give you a credit report that includes improvements which you need to increase your credit score.
You will get to know the likelihood of you getting different types of loans and which credit cards you qualify for. An optimisation is allowed on these websites, so you can adjust your results based on your how much income you earn.
To get started verification will be required. You will undergo a question and answer security check to identify if you are the correct person. Also, a copy of your ID and/or proof of residence will be needed. This will however depend on which service provider you will be using.
Four ways to get a free credit score in South Africa
We will list the four ways you can get a free credit score in South Africa. Our list will not specify any merit of the credit score providers but, however, we strongly recommend the use of these service providers. Furthermore, our list is in no particular order.
Here are our four picks:
Clearscore offers a lot of benefits to the user. The registration process is straightforward and easy so it only takes a couple of minutes to open a profile. The user experience is arguably the best on our list as their Mobile App and website is seamless and easy to use.
Clearscore updates credit scores on the 15th of every month so you will always get an update every month. You will not be charged any amount for having an account with Clearscore. The company curbs their credit score at 705 so your credit score will be quoted out of 705.
Not only do you get a credit score but you also get a free credit report. Your credit report will show all the things that you are doing good and also the things that you can improve on to increase your score. You will see all your accounts and loans and also how frequently you make payments on debt.
ClearScore will show you offers that you qualify for and the likelihood of getting accepted for such offers. Offer categories include loans, credit cards, car insurance, debt consolidation and mobile phone contracts. Offers will be based on your credit score and your monthly income.
2. Pulse by DirectAxis
DirectAxis offers a free credit score with its Pulse facility. With Pulse, you will be able to check your credit score at any time. DirectAxis is a little bit strict when it comes to security so to access Pulse you will need to undergo a security check and send an ID copy and a proof of address. However, this is worth it because you won’t regret it once your Pulse dashboard is active.
You wIll be able to get access to your credit score and report. The credit score will be from Transunion. For better user experience, DirectAxis shows the likelihood of you qualifying for the following:
- Vehicle finance.
- Home loan.
- Personal loan.
- Credit cards.
- Funeral cover
You can apply for insurance, loans and funeral cover from your Pulse dashboard.
Fincheck offers a free credit score and you can have a glimpse of your credit scores from different credit bureaus. The company, however, benchmarks its credit score by percentage points. So your credit score will be out of 100%.
With fincheck you can also get a free credit report. Additionally, get offers that includes :
- Debt counselling
- Vehicle insurance
- Credit cards
- Personal loans
- Medical aid
- Funeral cover
- Vehicle finance
4. My Credit Check by Compuscan
My Credit Check offers free credit score and report which is quoted using Experian standards. All you need to access your credit score is your ID copy and proof of residence. Approval will take a maximum period of 48 hours from submission of the necessary documents.
With My Credit Check Platform you will benefit from:
- Budget planning
- Submit disputes online
- Have access to your debt repayment behaviour.
- Access your credit report at all time.
- All personal information held by the credit bureau.
- Access your credit score all the time.
Your credit score is your most valuable asset and should always be nurtured and monitored at all times. You don’t know what the future holds so having a very good credit score will always unlock finances whenever you need them.
With a very good credit score, you will be able to leverage finances from financial institutions and other lenders. You don’t have any reason not to know your credit score as there are multiple free credit score providers. Make use of these and stay at the top when it comes to your credit score.
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