Poll finds that most consumers don't know their credit score

"Knowing your credit record is vital as it is an indicator of your creditworthiness. Credit scores are used by lenders to decide on whether to give you a loan. Employers, insurance companies and landlords can also ask to check your credit score, so it's worthwhile knowing what your credit score is. A good credit record means you are less likely to be rejected for mortgages, car or personal loans.

"It's a cliché, but usually spring is a season that brings with it new beginnings. Why not take this opportunity to spring clean your finances and really get to the heart of finding out why you are being rejected for finance - if that has been a problem. A credit record can go a long way to giving you an indication of how you've managed your money. Go through it line by line and look at what can be fixed," said Angelique Ruzicka, editor of Moneybags.

"Our poll, unfortunately, shows that consumers don't understand the importance of knowing their credit score and there is clearly a need to create more awareness around this issue, so that more people regularly check to see if their finances are in order," added Ruzicka.

Could be rejected

Ruzicka warned that those that have never checked their credit score run the risk of losing out on that dream home or car as they could be rejected for a loan because they have a poor credit score. She added that consumers could also run the risk of having their identity stolen.

"Credit-active consumers should check their credit score through credit bureaux like Experian, TransUnion or Compuscan at least once a year and go through it line by line to ensure that all is in order. Credit bureaux give you one free credit report a year and thereafter charge a nominal fee, so it's an inexpensive but worthwhile exercise," said Ruzicka.

"There are also a number of things that could affect a credit score negatively, including late payments, outstanding debt and the number of creditors you have. Consumers could be rejected for a loan for any of these reasons so it's vital that they find out what they are doing wrong so they can take steps to correct their ways and improve their credit score going forward," concluded Ruzicka.

If your credit score is all in order, Moneybags has come up with several other things you can do to improve your finances. These include:
Spring cleaning tips:

• Reduce your bank charges: Do you know how much you are paying in bank fees when it comes to your cheque, savings and credit card? If not, now is the time to find all that out and talk to your bank about moving on to a cheaper offering. "If there is no cheaper offering compare prices and switch to a cheaper product offered by another bank to save on fees. Why pay more when you don't have to?" said Ruzicka.

• Review your insurance cover: When last have you looked at your motor, home, medical scheme or gap cover? Find out when your renewal period is for all your insurance, note it down and compare prices. If you are not sure whether you are getting a good deal or the same deal for less, speak to a financial advisor or broker who can advise you on what you need.

• Look over contracts: What services have you signed up to and do you, nine months into the year, still use them? "Say for example you joined the gym in January with all the good intentions of exercising and keeping fit, but you have gone only three times in the year. Give that up and end that contract. You are just wasting your money on something you never use," said Ruzicka.

• Sort out your taxes: According to SARS you have till 30 September to submit your taxes manually or by post. Then non-provisional taxpayers have till the 27 November, 2015, to file online or at a SARS branch (non-provisional). "You've got two months to go if you intend on filing in a branch or online, but why delay any longer? If you do it now you don't have to scramble at the end and deal with long queues," said Ruzicka.

• Study your budget: Go over your budget from the beginning of the year to date and evaluate what has worked and hasn't worked. If you are struggling with debt or can't find ways to reduce costs, speak to a debt counsellor or financial advisor.

This Moneybags poll was conducted from March 2014 to September 2015.