has not been using any credit product so
meaning he has done nothing to improve
his credit score.
It is advisable to download a credit report
every six months or at least once a year as
this habit will enable you take charge of
your credit situation
Always start with knowing
your credit score
credit report.
Hard enquiries take a few points off
your credit rating, and lenders tend to
view them negatively because having
too many hard enquiries on your report
suggests you are desperate for credit and
not managing your resources well.
Try and be selective about who you
approach and ask for credit.
Download your credit report from at least
two CRBs for comparison purposes. Try to watch what you post on
social media
The habit of shopping around
for credit can actually reduce
your score Companies are already incorporating
social media as part of the overall
assessment of your credit risk, so keep
this in mind next time you post anything
publicly.
More applications you put in for credit
cards and loans may affect your score. Ensure you pay off your
Each time you apply for any form of
credit, your prospective credit provider is debts:
likely to make an enquiry on your credit
As much as possible avoid negative
report.
accounts: Do not let your loan
This is called a hard enquiry, as opposed to repayments get behind or your accounts
a soft enquiry where you request your own fall into the negative. Each time you
default on a loan repayment or your account
runs into the negative, it is logged and noted,
so do not let it happen.
Pay your bills on time
If you are in trouble, get help from a debt
counselor. It is high time you sought for
assistance to manage your debt troubles.
Remember, continuously using credit
facilities like credit cards, Mshwari and any
other and ensuring you pay on time is a way
of building a good credit score.With these
basics I hope you are equipped to deal with
personal debt management and have good
debt that will assist you to grow.
Wasilwa Miriongi is a certified Credit
Professional currently working as the
Managing Director, Del Creder Credit
Management Limited. You can engage
him on this or related matters via email at:
[email protected].