Understanding Credit
BUILDING A BRIGHTER FINANCIAL FUTURE & GOOD SUPPORT
1. Credit Score
Credit Score is like a financial report card for adults, measuring how well they manage their money, A high score means you're good at paying back loans and credit cards, A low score means you struggle with it. A high credit score can get you better loan terms and significantly lower interest rates, A low score can limit your credit options and cost more in the long run.
2. Credit Reports
A credit report is a paper that shows how well you manage your money. It has your name, address, and ID number on it, as well as a list of your loans, credit cards, and other debts. It also shows if you pay your bills on time or late, and if you've had any problems with debt in the past. This report helps banks and lenders decide if they can trust you to borrow money and pay it back.
3. Credit History
Credit history is a record of how you've borrowed and repaid money in the past. It shows if you've made payments on time, missed payments, or had any problems with debt. Think of it like a financial diary - it keeps track of all your borrowing and repayment habits over time. This helps lenders see if you're good at managing debt and decide whether to lend you money in the future.
4. Credit Factors
Lenders consider 5 things when deciding if they'll lend you money. They look at your character, and your capacity to afford the loan. They also consider your capital, or how much money/assets you have, and whether you have collateral to secure the loan. Finally, they look at the terms and conditions of the loan and the current economic situation to determine the risk before lending.
Contact Details
Richards Bay, KwaZulu Natal
+27 605092000
info@ksloanspty.co.za
