How strong is your personal credit score?

As we are still on the precipice of a downgrade,to keep us from falling into ‘Junk’ status we should be well aware of the possible outcomes of losing our investment status.

We often wait far too late to remedy things and to avoid a bad credit score. Don’t make the same mistake with your personal finances which you can control. You should be well ahead in your ability to service your debt even in the face of a sharp rise in interest. Essentially, ratings agencies assess countries ability to service and repay their loans.

Your personal money lenders check your rating before proceeding with providing you with a loan or credit. They stringently assess your ability to afford your debt using key factors which provide a credit rating.

There are people watching us, in terms of banks and lenders and they are certainly going to use the avenue of credit rating to quantify and validate the credit readiness of us. Now the question is: how often do we look at our personal credit score, and how much attention do we pay to it towards getting a better rating?

Paul Roelofse - Certified Financial Planner

If you knock on the door of your bank, and you want to lend money. The fist thing they are going to do is to check your track record of how you have maintained your repayments of your various loans in the past.

Paul Roelofse - Certified Financial Planner

Speaking to Phemelo on the Weekend Breakfast, Paul said: even if one is not going to take up a load, but it is very important to keep a good credit score.

Click below to listen to the full interview:


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