Stay on top of your credit health
Just as your physical health depends on your lifestyle choices, your credit rating is a reflection of your credit habits. To keep your credit score in good shape, it is important to check your credit report on a regular basis. However, improving your credit rating is not something that happens overnight, and requires commitment and perseverance. In addition to breaking bad credit habits, regularly checking your credit report is essential if you are looking to improve your credit rating.
According to data from TransUnion1 collected over a 12-month period, less than 15% of people who did not check their credit report saw an improvement in their credit rating, versus 34% of people who continuously monitored their credit report over a 12-month period.
Among people with Near Prime rating (Grade D, E and F), 57% saw an improvement in their credit score.
To stay on top of your credit report and identify steps for improving your credit rating, TransUnion recommends monitoring your credit report for at least 6-12 months.
In addition to improving your employment prospects, a good credit rating can also help you to obtain a lower interest rate (Annual Percentage Rate, APR) when you take out a loan.
According to data from TransUnion1, on average, borrowers with Grade A receive an APR of 4.8%, whereas interest rates for borrowers with a Near Prime rating (Grade D, E or F) can be as high as 10.7% to 19%.
Your credit rating can therefore have a decisive impact on your life plans. However, just like your physical health, improving your credit score is not something that can be achieved overnight – to see an improvement, you’ll need to monitor your credit rating continuously over the medium to long term.
Checking your credit report on a regular basis helps you to keep track of your credit rating and ensure that it’s in good shape for your next big financial decision – be that purchasing a property, starting a new business, moving overseas, or finding a new job. At TransUnion, we recommend monitoring your credit report for at least 6 to 12 months so that you can keep an eye on your score and identify steps for improving your rating.
|Good credit rating (Grade A, B or C)
|Unfavourable credit rating
(Grade D or below)
We recommend taking the following steps over a 6 to 12 months period:
Improving your credit score takes time and requires perseverance. The earlier you start, the better, so monitor your score now and plan your path to a better financial future!
1Remarks: From 1 September 2020 to 31 August 2021.
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