In the “good old days” our parents were always advocates of the fact that we should rather not operate accounts and pay everything cash.
It seems, in light of the current economic turmoil that they were right!
However, in modern times, it is vital to have some kind of credit record.
Your credit record is your credit score and it is this score that decides whether or not you are worthy of being advanced credit.
Credit can in some instances be regarded as a good thing or a bad thing – a “good” example of credit is a mortgage loan whereby you use your credit rating to obtain a asset. “bad” credit will be your credit card and “dreadful” credit would be where you use your credit card to buy perishable items like food.

In our technical world, there is no way of escaping your reality when it comes to credit. Every transaction is noted and listed on various websites. Late payments and non payments immediately reflect under your name and have an instantaneous impact on your credit record. Even something as silly as paying your rent late has an impact on your score.

It is advisable to check your credit record at least every 6 months – you are entitled to one free check each year. This will also make it easier for you to see what you qualify for or what you have to strive towards if you have in mind of applying for a big loan for special purposes like a home loan.

Should any of the information on your report be incorrect, you have the right to contact the bureau and have them change it to the correct state of affairs. Be warned – this is a very time consuming process and you will have to follow up with the bureau regularly to make sure that they have complied with your request.

This also protects you from identity theft whereby someone else uses your name and details to fraudulently obtain credit.

Fiona Williamson 082 820 6428
(fiona@holaw.co.za) •