The Different Types of Credit Rating


Many consumers may not know what their credit score is, nor even know how a poor score is negatively impacting their ability to obtain credit. 

By law, South African citizens are entitled to one free credit report every year and through this credit report it’s where an individual can understand what their credit rating is. 

A good credit score is paramount when purchasing a home, financing a vehicle or obtaining any other loan. Your chance to obtain credit could therefore be hampered by a poor credit rating. 

It’s important to maintain a good score as credit providers consider this information when deciding whether they’ll extend credit to you. 

A high credit rating indicates that a consumer is a low risk borrower, and vice versa. A lack of positive credit information influences your credit score. This can cause an application to be declined or can result in a higher interest rate, which will increase the cost of credit and will have a notable impact on the amount that you need to repay. 

Your credit rating is calculated using the information contained on your credit report, including account information, your payment history, adverse information, public records and enquiries (requests by credit providers to view your credit report).  

It’s a summary of both positive and negative factors that predicts how likely you are to honour your future credit agreements. Your credit score will however differ at each of the registered South African credit bureaus as they’re calculated differently at every institution. 

Below are the different types of credit ratings. 

605 or less = Very High Risk 

606 – 621 = High Risk 

622 – 641 = Average Risk 

642 – 667 = Low Risk 

667 or more = Minimum Risk


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