How to build and protect a good credit rating:

  • It?s all about control. Borrow only what you can afford! Never let your monthly debt repayments exceed ten percent of your monthly net income (the amount before subtracting tax) and never spend more than 20 percent of your annual after-tax income.

  • Always pay your bills, or at least the minimum amount, on time.

  • Only consider taking on more credit if you?re earning more than you spend on a monthly basis.

  • Keep your finance file up to date with copies of sales slips and payment history.

  • If you end up borrowing more than you earn, see which expenses you can cut out.

  • Close accounts you're not using. Lenders look at opened but unused accounts as an opportunity for you to go on a 'spending spree'.

  • Don?t max out all your cards at once.

  • Don?t use your credit card to buy small items such as bread and milk or to draw cash.

  • Have you got a question related to banking? Click here to ask our banking expert.

  • For further information about Capitec Bank, click here!

    South Africans are mired in debt like never before. Do you think we'll ever learn or will we just continue racking up debt the moment the good times start rolling again? Leave a comment below?