How they calculate your credit rating?

How they calculate your credit rating? 2018-05-07T15:07:28+00:00

Bad credit doesn’t only affect car financing – it has a huge impact on your ability to obtain loans, cell phone contracts, mortgage bonds, credit cards and so forth. Your credit rating shows how responsibly you are able to loan and repay money and it indicates whether you are solvent, reliable as well as financially stable or not.

Your credit rating is calculated using the data of your past spending habits. When you default on repayments, are declared bankrupt or show any other type of failure to repay money you have loaned, this will reflect negatively on your credit rating.

How to improve your credit rating

  • Repayment: If you fall into arrears with your repayments, this will show on your credit rating. It is important to clear any debt as quickly as possible because missed payments will remain in your credit history for 7 years. It is wise to let your creditors know why you have fallen behind with payments (such as losing your job, illness etc) because this information will be added to your file.
  • Contact creditors: A creditor (who loaned you money in the past) will keep reporting your details to a credit agency if you have fallen behind on payments. If you have cleared your account with these creditors, contact them and ask them if they would stop reporting your account (seeing as you no longer owe them any money).
  • Responsible spending: Accounts at clothing stores as well as credit cards are some of the major culprits of bad credit, but to prove that you can spend responsibly you need to show that you can manage these forms of credit. If you pay the balance at the end of every month, this will improve your credit rating.
  • Earn-a-car finance – If you are looking for vehicle finance, but you have bad credit, you can rehabilitate your credit rating and get the car you want through the cash-back / Earn-a-car programme from Earn-a-car.

How Earn-a-car can help you

Earn-a-car helps people with bad credit to get the vehicle finance assistance they need. If you have been blacklisted (or you have a bad credit rating), we can get you mobile with our fleet of pre-owned quality cars.

With Earn-a-car, you get to choose a car and earn cash every month you keep the car. You can use this cash to take ownership of your chosen car at the end of the agreement. Our unique model will get you behind the wheel and driving within 24 hours of meeting the criteria!

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