Your Credit Bureau score is only a number. It does not endorse you and doesn’t tell credit providers or service providers whether you should be approved for credit. It doesn’t require you to be a specialist or to worry about it.
So, right? False. The Credit Bureau score will show you, in the form of a number or a percentage, what your credit report contains. It will show you how your credit standing compares to other consumers.
Most credit and service providers use your credit report as a key part of developing their credit risk score. Your employment history, your income, affordability, and the type of credit you apply for could all impact the outcome of your credit application.
The Credit Bureau score is calculated using a formula which evaluates your ability to pay your bills on time, how much you owe and how that compares with other borrowers. It basically tells you what your credit report has to say about how well you manage your existing credit.
What is a good credit score in South Africa?
The better your score is, generally speaking, TransUnion Consumer Credit Scores, for instance, can range between 0 and 999, or from poor to outstanding. These score bands can be used to determine the score:
*EXCELLENT: 767-999*GOOD: 681-766*FAVOURABLE: 614-680
*BELOW THE MEDIAN: 527 – 552.
Your credit score is calculated from all credit information you have in your credit reports.
Your credit score is a guideline for applying for credit to purchase a house or car or increase your credit limit. If your score is below average, negative or unfavorable, it means that you need to work hard to improve your credit risk rating.
This could indicate that your credit report may be inaccurate. This could be a sign that your credit report is not as accurate as you think.