Learn more about credit | Sanlam Credit Solutions

Credit solutions

Learn more about credit

Most people think of credit as bad, but, actually, it forms part of your financial power – if you keep up with and understand your credit profile.

Good and bad credit
Improve your credit score
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Good and bad credit

The difference between good and bad credit often comes down to what you need vs what you want – and it’s mainly splurging on what you want that creates the problem. It’s never a good idea to use credit for luxurious activities; after the festivities are over, the debt will keep you in its stranglehold.  

When obtaining credit, avoid bad credit and rather invest in good credit, like finance solutions that offer lasting results.

Money spent on items that increase in value or lead to a financial gain.

Home improvements to increase the value of your house
Education to build a better career
A new and reliable car to ensure the safety of your family

Money spent on items that decrease in value, especially when they come with high interest rates.

Luxury items
Expensive holidays
Big events such as a wedding or birthday
New clothing and fancy cars

Ways to improve your credit score

Credit providers use your credit score to assess the risk of taking you on as a client.  A low credit score can result in rejection or a high interest rate.

Check your credit payment history
Credit providers will check your credit payment history to see if you have paid your debt instalments on time every month. Check if there are any instalments which you haven’t been paying as you are supposed to and start paying them in full every month.
Build a strong credit history
Try to establish a healthy balance of credit accounts so you can build a strong credit history. A healthy balance can include credit accounts with stores, a mortgage agreement and service contracts. Remember to set reminders for yourself to pay your instalments on time.
Ensure your credit report is accurate
Commit to paying off all your accounts that are in arrears. Make it your goal to spend less than 30% of your credit limit in order to avoid spending money you don’t have. You can also take the necessary steps to pay all your outstanding debt so that any negative information can be removed from your credit report.
Avoid too many account applications
Check your credit reports regularly and make sure there aren’t any negative issues that are dragging your credit score down. Look out for things like a court judgment, where a court issued an instruction to you to pay an outstanding debt amount, or an old issue that’s been resolved but still appears on your report.

Avoid getting scammed

The online world has given criminals even more opportunities to defraud innocent people who may be experiencing financial stress. So, look out for suspicious emails and messages, and scam artists who claim to be affiliated with Sanlam. Should you receive a loan offer, investment opportunity, or any Sanlam communication that makes you feel uneasy, please contact our customer care team or report it to your local police station.

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Stay informed about credit

Buying on credit is certainly convenient, especially when you don’t have available funds, however, too much debt can lead to rather severe consequences.

To take out a personal loan might mean the end of your financial problems. Allow us to advise you on how to manage your money wisely.

All your debt might have you feeling emotionally drained. It’s time to tackle your debt proactively and to start managing it productively.