What factors do credit bureaus consider when compiling a credit record and calculating a credit score?

Author

MyProperty

Using a complex formula, credit bureaus will compile a record of your personal credit transactions, employment history, and income, they rate your debt repayment performance according to a credit score chart that indicates how well you manage your debt.

Credit bureaus look at the following factors when calculating your credit record:

Your repayment history
How much you owe
The different types of credit you have applied for and how often
How long your accounts have been open
How much of your available credit you’re using
If you have a history of bankruptcy or a judgment against you

Home Loans Property News

Market & Opinion

Should you sell your home? Key factors every homeowner needs to consider

28 Nov 2024

Making the decision to sell your home is never easy. Whether you're motivated by life changes, financial opportunities, or a shifting real estate market, it’s essential to weigh all factors carefully before taking the leap.

Market & Opinion

Understanding hidden home ownership costs before buying your first home

11 Nov 2024

Before buying your first home, it’s essential to budget for hidden costs beyond the bond repayment. Common expenses include utility fees, municipal rates and taxes, homeowner’s insurance, and ongoing maintenance. Planning for these costs can help first-time buyers in South Africa manage their finances more effectively and avoid unexpected expenses.

Market & Opinion

Understanding home equity - what it is and why it matters

05 Nov 2024

For many home buyers, the main focus is on creating a home, often overlooking the investment potential beyond knowing that real estate generally appreciates over time. However, understanding and leveraging your property’s equity can be transformative, helping you manage finances, invest in home improvements, and build wealth.

Market & Opinion

The biggest regrets of first-time home buyers

01 Nov 2024

Buying your first home is an exciting time and it should be the start of many happy years spent enjoying your investment, however, many first-time homebuyers find themselves facing unexpected challenges or wishing they had made different choices.