Are you looking for a home loan but you are not sure that you’ll qualify due to your credit history, but that shouldn’t stop you from applying altogether, many people in South Africa depend on home loans to purchase a house.
Knowing the credit score required to qualify for a mortgage is important because that can help you choose the right loan that you can afford, but every South African loan lender has their own desired criteria with credit scores.
A credit score that can be considered as the minimum or good score is between 658 and 740, people with that credit range have a better chance of qualifying for a home loan.
Advantage of having a good credit score
Having a good credit score is very important because that will indicate that you are creditworthy and you will be able to secure loans from big lenders like banks, because they will see from your credit score how well you handle your debts and you’ll be able to get lower interest rates on your loans.
Disadvantage of having a low credit score
A credit score that is between 599 and 615 is considered as fair or low, if your credit is between that range it is possible for you to qualify for a home loan but you’ll be charged big deposits and high interest rates, if you have a poor credit score of 599 and below you’ll find it hard to get a loan from big lenders but you can get assistance from lenders that offer unsecured loan, make sure to know their terms and conditions before applying.
Where to get a free credit score and report online
If you want to check your credit score for free in South Africa, these trusted financial institutes can help you get a free online credit check:
Experian
- With Experian you will get a free credit score and credit report for life with their My Credit Check portal on their website
TransUnion
- With TransUnion you will get a free credit report once a year, you can access this service online after registering on the website.
ClearScore
- ClearScore offers free online credit score and report, to use their service you can download their app or sign up online, you can check your credit score monthly
Nedbank
- Nedbank has an online service that offers free unlimited credit checks for its clients and also gives you advice on how to improve your credit history and more.
Sanlam
- Sanlam provides a free online credit report with their credit profile dashboard that you can access online by registering on their website
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