Article written by Ans Gerber (Head of Data Insights at Experian Africa)
If you have taken out a loan or a store account, or have a credit card or a home loan, you have a credit record. Having a good credit record could make things easier when buying a car, financing your dream home or getting a loan.
A good credit report is summarised into a credit score, which indicates your risk of failing to pay back a loan. If you are a risk, your score will be low. Conversely, if you are less of a risk, your good score will be high, and could help you receive loans quickly and at a favourable interest rate. This is why it’s a good idea to understand your credit report, which is freely available to you from credit bureaus, especially if you are planning to apply for a loan in the foreseeable future.