WHAT IS A CREDIT SCORE AND WHY YOU NEED TO IMPROVE YOURS
Category Commerical Property News
When you apply for a loan to buy a property, business or car, your credit score will determine if you qualify for one or not and how high your interest would be. If you are a high-risk case with a low score, you might not get a loan or pay a much higher interest than someone with a good (higher) score. A credit score rating of 600-plus is required to qualified for a bond on a commercial property.
HERE IS A BRIEF GUIDE TO THE DELPI SYSTEM:
650+ = Excellent credit. This person will obtain credit with ease and pay a very low interest rate.
600 - 650 = Very good credit. This person can get the best loan at a good average interest rate.
550 - 600 = Good credit. This person will still receive a good deal and pay slightly higher interest rate.
490 - 550 = Sub-prime. This person might struggle to get a loan and the interest rate will be much higher.
490 and below = Poor credit. This person may not qualify for any loan and is better off improving his score for a future loan.
WHAT YOUR CREDIT SCORE SAYS ABOUT YOU
Many South Africans are still in the dark regarding their credit score. Credit Bureaus have a complete record of each person's financial history, good or bad. From these factors they will put together a score to indicate if you are a good candidate to repay a loan or not and this will determine the interest rate of such loan from a bank or financial institution.
Each person should know their score before applying for a loan, try to improve if low and not waste time applying for a loan if the chances are low to get approved.
If you are young and have no previous credit history, open a smaller account like a cellphone or clothing account, then pay it off each month and over time you will build a good credit score. If you have an old account, never close them as they are a good indicator of your financial history.
If your credit score is low because of previous missed payments or bad debt, try and pay it off as soon as possible and in regular instalments. Never miss a payment. Don't apply for more credit if you have a current loan. This will improve your credit score.
HOW TO CHECK YOUR CREDIT SCORE
According to Old Mutual, South Africans are entitled to one free credit report per year from one of the credit bureaus: TransUnion, Compuscan, Experian, and XDS. If you want to get more than one credit report in a year, you can get a second from any of the previously mentioned credit bureaus for a minimal fee. One can also get a free credit report from ClearScore.
THE NEXT STEP: FINDING A COMMERCIAL PROPERTY TO INVEST IN
Once you have a clear indication of your credit score, you can start looking out for an investment property to grow your portfolio. OfficePlace has a wide range of commercial spaces available for sale, and our expert area brokers are always on hand to guide you in the right direction to make your first investment buy. Reach out to us today and we'll gladly assist in finding you a commercial space that works for you and your business.
Source:
https://www.oldmutual.co.za/articles/everything-you-need-to-know-about-credit-scores/
Author: OfficePlace