what is a credit report and how to analyse it.

Regularly reviewing your credit report is crucial for maintaining financial health. It provides a detailed record of your borrowing and payment history. Your credit report is used by lenders to determine credit-worthiness. Regularly addressing inaccuracies, disputes, and fraudulent activities can improve your credit score tremendously.

Why should you look at your credit report?

Analysing for Errors and Fraud

Because your credit report determines your credit score which impacts eligibility for loans, cards, and financial products; identifying and disputing errors here is crucial in regards to the proceeding step you may take in your financial life.

You should dispute with each credit bureau that has the mistake. Explain in writing what you think is wrong, include the credit bureau’s dispute form (if they have one), copies of documents that support your dispute, and keep records of everything you send. Here is an article from Experian with more information on disputing errors with your credit report.

Remain ahead of your expenditure patterns

Credit utilization determines credit score; regularly reviewing your report and National Credit Act Guide helps you to stay in the loop and provides a solid understanding to make necessary adjustments.

Initially, you will need to be able to track your spending. There are many ways to do this, such as making use of a budgeting app, keeping a spending diary, or simply writing down all of your purchases in a notebook. Ensure you keep track of both card purchases as well as cash.

Once you know where your money is going you can now create a budget. Allocate your money to different categories, such as housing, food, transportation, and entertainment. This will help you avoid over spending and keep you on track to your goal. Pro tip: Don’t try to pull all your money into responsibilities and neglecting your wants – this will lead to lack of motivation and you will fall back into bad spending habits

One important thing to include in your budget is a financial buffer. This is money kept for unexpected expenses such as job loss or medical emergencies.  Aim to save at least 3-6 months of living expenses.

Review your spending regularly. It is important to ensure you are staying on track. This will also help you identify any changes in your spending patterns. This change could be anything from overspending to a pleasent suprises on how much you have managed to save on a monthly basis.

Finally, make adjustments as need. If you find that you are overspending in a certain category, you may need to make some adjustments to your budget. Perhaps you find yourself with excess cash flow you could use to invest and build capital and gain financial freedom.

Making a loan with the right foot.

Review your credit report before applying for a loan to ensure accurate terms and interest rates. The better your credit score the better the terms and conditions of the exchange will be as you are seen as credit-worthy.

How do you get your credit report sorted out?

1. Receive a copy of your Credit Report from us.

you can get a free credit report from a major bureau (annually) and there after pay a fee. Or receive one from us Obligation-free.

2. Look through your Personal Information.

Ensure accurate and up-to-date personal information.

3. Identify any errors and/or inaccurate details.

You should be looking for any credit report errors, inaccuracies, and unauthorized accounts.

4. Disrupt the error.

Debtguides.co.za will be able to disputing credit report errors and have them ironed out swiftly. an exmple could be an account that reflects an amount owed but you have a paid up letter for this account – providing our debt counsellor with the paid up letter, the issue will be taken care of by the debt counsellor and our legal team.