Would you like to know if your credit score is rating is poor, excellent, or somewhere in between? You may not know your credit score and your financial stance with creditors. So how do you check your credit score, and is this process for review free? The article covers the ins and outs of reviewing your credit score for free. In today’s day and age, the solution may be closer than you think. Several online sources make it exceptionally easy to review your credit score. Read below for additional online tools available to check your credit score for free.
Why check your credit score
What does this 3-digit number mean for your finances? A creditor will make assessments based on your credit score, in which they will see if you qualify for a potential loan or if you qualify for a credit card. This score indicates to lenders your payment history, additional debts, management of your finances, and overall associated risk of individuals. Additionally, when it comes to your score, lenders will allocate an interest rate based on this risk. Namely, higher interest rates are charged to those with lower credit scores. Those with a higher rating will have a lower interest rate and possibly more beneficial loan options.
Understanding your credit score
Before reviewing your credit score, you will need to understand the meaning behind these numbers and what they mean for your finances. As with any rating system, there is a range in which they are rated. Below you will find a list of ratings and the associated meaning behind these scores.
Credit score ranges
Credit score under 300
A score below this number indicates that users have yet to develop their credit history. With scores as such, this is a fresh start with little to no credit. Individuals should consider developing some form of credit if their credit score falls below this range.
A credit score of 300-579
A score as such is considered a low credit score. This may be the result of a damaged credit history. This shows lenders that there have been several defaults within your credit history on different credit accounts or from other lenders.
A credit score of 580-669
A score within this range is usually an indicator that there are no significant negative issues regarding your previous repayment history. A score as such is considered fair. This rating is generally deemed as a favourable credit score. At this point, lenders will offer interest rate options. However, these options may be somewhat limited.
A credit score of 670-739
This is considered a good score in the eye of lenders. However, it is still a fairly average score; this range will offer you competitive interest rates. However, you may need to boost your credit score further to qualify for more ideal types of credit.
A credit score of 740-799
This is a perfect and ideal credit score to have. Regarding lenders, you are shown as a shallow risk. Additionally, this indicates that you have a certain degree of managing your credit and finances responsibly. To achieve a score as such, you will have to show a timely payment history and where you have honoured your repayment terms.
A credit score of 740-799
An excellent credit score where users are consistently responsible with their repayments and managing their credit effectively. This score will enable users to be offered much lower interest rates. In Addition, this may extend to credit cards, loans, or home loans. A score as such indicates to lenders a shallow risk.
Where to check your credit score for free
You may wonder which sources you can check your credit score from for free. There are numerous sources online to do this. Below is a list of accessible sources to assist you in doing so.
When it comes to an accurate credit check, CreditBureau makes use of multiple sources to form a credit review. This is an excellent and accessible means to ensure the accuracy of your credit score. Using four of South Africa’s leading credit bureaus, inaccuracy between credit reviews will be a straightforward process regarding disputes.
Not only does TransUnion offer a free credit check, they additionally provide a multifaceted means by which individuals can review their finances. TransUnion has partnered with several existing financial service providers. These are medical aid schemes, property management, and credit providers to enable their clients to understand the full scope of their finances.
When looking into an online source to establish your credit score, Kudough offers its users additional financial advice based on their current financial circumstances.
Experian offers free credit checks in the form of “My Credit Check” and “My Credit Expert“, a customer-friendly online service. Additionally, they procure accurate credit reports, tips, and advice to understand your credit score better.
They offer to evaluate your financial data, namely through credit reports and credit score ratings, and Open Banking data. This is a banking practice where other financial service providers can access consumer banking, payment history, and other financial data. These can range between accredited and unaccredited lenders and credit providers.
Potential disputes when reviewing your credit score
Once you have reviewed your credit score, it may be wise to use more than one review. The benefit of this is to ensure accuracy and handle any potential errors. Some creditors may not report and record all the activity on your accounts. Hence the importance of making direct comparisons.
Opening a dispute on your credit history.
When opening a dispute, ensure that you have adequate proof that your information is accurate. This can come in many forms ranging from bank statements to loan documents. Reach your credit provider with this information so they may review such a dispute accordingly. Credit providers may simplify the process by making use of methods online.
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Loan amount R100 - R250,000. Repayment terms can range from 3 - 72 months. Minimum APR is 5% and maximum APR is 60%.