This post was sponsored by Sanlam.
Let’s be honest, your credit score can affect your purchasing decisions especially if you are planning to take out a bond or buy a new vehicle.
Many of us have no idea what that score is or means until it is time to purchase something big.
I have so many goals for 2023 including traveling a bit more with my kids since they have been cooped up for over 2 years at home. I need to stop spending unnecessarily on spontaneous trips and restaurant visits and rather plan. As a mom of three, for a long time, I was clueless when it came to the finances in my home. My husband always took care of it, and I made sure we had everything we needed to run the house even though I was a business owner myself.
I always wanted to be an independent, strong woman yet I failed at doing the one thing that could help build my independence – understanding my finances better.
Covid19 pushed me into a corner that forced me to educate myself more about topics such as good debt, bad debt, how to use credit most effectively etc.
Let’s get real here – We need to take more control and responsibility of our finances, and we need to financially educate ourselves constantly. Mistakes are bound to happen, you might lose money, but you will learn from it and make better decisions going forward.
“Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.” -Ayn Rand
I am hoping that this post will help you understand your credit score and its importance in your lifestyle.
Where do I check my credit score?
Thanks to the Sanlam Credit Solutions Dashboard you can manage your finances better and check your credit score on a regular basis to see what is impacting it in a positive or negative way.
Why should you use the Sanlam credit solutions dashboard?
- See how much you are paying on your accounts each month.
- Track your account activity and interest rate payments.
- Check if you can consolidate your credit and free up cash flow.
- See if there is suspicious activity on your account.
- Link your bank accounts and see all your financials in one convenient place.
- Use their handy budget tool to keep track of your spending.
- Speak to a Credit Management Coach – this really helps you understand your current situation and how you can meet your financial goals.
- Explore a range of financial and credit products suitable for you.
How is your credit score calculated?
It is calculated according to your past payments, debts, and other financial activity. A credit score of 600+ is considered passable and is probably high enough to get a loan application approved.
What should you look for when checking your credit score?
On Sanlam’s Credit Solutions Dashboard, you will see your credit breakdown which includes personal loans, credit card, vehicle finance etc. – this is what impacts your score especially if you miss payments or pay late often.
Make sure you look for the following:
- Unrecognized credit accounts and instalment accounts (mortgages and loans).
- Inaccurate status of an account, such as a closed account marked as open etc.
- Incorrect payment history, such as a current account labelled past due.
- Incorrect credit limits and balances.
How can you change your credit score?
Improving your credit score can sometimes take around 6 months. The best way to change your score is by paying off debt in time or even paying in extra when you can. Also, make sure you never miss payments.
It is never too early or late to take back control or get started on your financial education journey.
As December approaches, remember the consequences of impulsive shopping and think about what you can pay in extra which could assist in bringing down expenses in January.
3 tips to help you reach your financial goals:
- Look at side hustles that could increase your monthly income.
- Create financial goals and make them specific for long, mid-term and short-term.
- Build up an emergency fund – we all learned about this during Covid19.
For more information on the Sanlam Credit Solutions Dashboard, visit https://bit.ly/3G1u4Dt