Credit history - probably not an unheard word for those who have ever borrowed or received individual offers from lenders. Lenders always check a customer's credit history before making any decision.
What exactly is credit history?
Credit history is your statement of financial liabilities. It consists of existing credit liabilities and also of liabilities that have already been made. Your credit history reflects which loans and to which lenders you have made, how you have repaid the loan and whether or not you have delayed any payment. Credit history is affected by all types of loans, bills and debts. This information determines whether your credit history will be positive or negative.
What Can Damage Your Credit History?
Failure to make payments on time is one of the reasons that can damage your credit history. This also includes information about payments made not only if you have a loan. Late phone bills or delayed utility payments also appear in your credit history and damage it.
Loan guarantee is not a foreign concept and is completely normal among borrowers. However, one must be very careful when guaranteeing a person and their ability to repay the loan regularly and fully must be carefully assessed, because if a particular person is unable to make regular payments, their unpaid bills will negatively affect your credit history.
Any income that cannot be officially certified will have a negative impact on your credit history. It is important that all income is reasonable and evidenced by an employment contract.
How to improve your credit history?
Damaging your credit history is very simple and quick, but repairing your credit history can be a more complicated process. How to improve your credit history? What to do if there is a delay in making payments, if a debt has been incurred and your credit history is already damaged?
The primary rule for correcting your credit history is definitely the settlement of debts and liabilities. Show initiative, make payment of debt and overdue interest, otherwise it will not be possible to improve the credit history and the existing debt will only increase.
From now on, borrow only as much as you are actually able to pay back. If you are experiencing pre-existing loan repayment difficulties or you have already developed a debt, then this situation is most likely due to you overestimating your financial ability to repay the loan.
Be responsible! Many lenders will not initially respond to a loan if you have a damaged credit history, but there will be lenders who will consider it. It is important for the lender to believe and see that you have tried to repay any payments or debts responsibly.
How to find out your credit history information?
Many people are not interested in checking their credit history on a daily basis and only hear about it when they want to get a loan from lenders. To be completely sure of your creditworthiness before reviewing the loan, you can also check your credit information yourself at https://www.mycreditcheck.co.za/ , https://www.mycreditexpert.co.za/