A credit score is a number used to describe how well a person handles debt. The number is calculated by various credit bureaus in South Africa (including Experian, TransUnion, and XDS). The higher this number is, the better. It usually ranges between 300 - 850 depending on which rating system the bureau uses.
Having a good credit score is essential for taking out a home loan. It will not only affect your approval, but it may also open up the possibility of negotiating better interest rates. To get approved for a home loan in South Africa you will need a credit score of 600 or more to be considered by any of the major banks.
It's not only possible to improve your credit score but it's simple too. However, that doesn't mean it can happen overnight, or even in the span of 30 days. It can take up to seven years to repair a bad credit score. So, if you have a bad credit score (lower than 579), you should start working on it immediately.
Follow these simple steps to improve your credit score and qualify for a home loan:
After you improve your credit score and qualify for a home loan using our easy tips, find your dream home! Our experienced agents are ready to help guide you through all of the steps to follow after you achieve healthy credit. Browse our available properties from some of Cape Town's most sought after suburbs.