Since the new credit act came into effect, banks and affiliates have cracked down on easy credit. Your credit rating is imperative to financial wellbeing in these troubled times. To improve your credit score for a future home loan or unexpected emergency, read these 8 tips...

1. Make sure you're on the electoral register
I know you're probably trying to forget about the elections now, but this is the first place lenders and credit reference agencies look to check your home address. Contact your local municipal electoral office during office hours and ask for the Independent Electoral Commission Office. Double check your registration and details.

2. Check your family’s rating
A lender will see information relating to everyone living at your address when you apply for credit. Even family members who have moved elsewhere may affect your rating! If you are estranged from your family, you can ask the agency to separate the files. Visit www.mycredit.co.za for more information.

3. Don’t apply for too many loans
Be selective when applying for credit. If you're turned down once and then apply to lots of lenders hoping one will give you money, the information will appear on your file. It may look as if you are trying to commit fraud.

4. Always pay your bills on time
Don’t wait for a final reminder – that red letter might be your way of making the most of your cash flow, but it sends the wrong signals to the utility companies and the credit reference agencies.

5. Say why you fell behind
If you failed to make payments on a loan in the past, tell the creditor the reasons why. For example, illness, redundancy, relationship breakdown. Your statement will be added to your file, helping you get credit in future.

6. Don’t let late payments end up in court
Council tax debts and unpaid bills can get out of hand. If you fall into financial difficulty get in touch with your local Citizens Advice Bureau (in the Yellow Pages). If you end up with a summons to appear in court for non-payment, you will have problems getting credit in the future.

7. Never go to a credit repair agency
These companies charge approximately R5,000 to improve your credit rating but are often just loan sharks. You don’t need to pay someone else to correct the details on your file – you can do it yourself for free after you have paid to see your file.

8. Check your file yourself
For a small fee you can see your file. This way you can check yourself if there are any problems.

Visit www.mycredit.co.za or www.credithealth.co.za to get a copy of your credit record or for more information