Your bureau credit record is a snapshot of how you conduct your financial affairs; whether you pay your bills on time and whether you are truthful when you make payments arrangements. You need to ensure you stay on top of your finances and don’t take out too many loans in a short space of time.

It is important to know that having a bad credit record could make it more difficult for you to buy a house or a car or to apply for further credit.  You can maintain a good credit record by:

  • paying all your financial obligations in full;
  • always paying on time and not skipping payments;
  • living within your means; and
  • regularly viewing your credit record through the various credit bureaus.

Remember that debt agreements are legally binding contracts and that you should always inform your lenders of a change in your circumstance. A good credit record is ultimately rewarded as people with good credit reports benefit from lower interest rates, better repayment terms and special offers when they arise.

The key to enjoying the benefits of good credit is to know how to manage your finances. If you don’t budget or monitor your cashflow correctly, you will often overspend. Make it a habit to do a monthly budget so you can identify where you overspend and make improvements to better your situation.