Martin Endjala
TransUnion Namibia’s country manager, Lara Enslin has urged consumers to avoid taking on additional debt during the festive season, emphasising the importance of maintaining a good credit score.
In an interview with the Windhoek Observer on Wednesday, Enslin advised individuals to avoid maxing out credit facilities and to monitor their credit usage.
She recommended keeping credit utilisation below 35% of the limit and prioritising the repayment of outstanding balances.
“So if you check the credit limits on your loan accounts, credit cards, and overdrafts, see how much you owe on each. You plan to maintain a healthy amount of headroom in your learning facility to pay for as much of your outstanding balances as possible,” she explained.
She said if the person can do that, it will reflect on their score and ease the pressure on their finances.
She added that keeping credit usage below 35% of the limit is ideal.
“For example, if they have a credit card or store account with a maximum limit of 1200, they should try to maintain that amount,” she said.
This can reflect positively on one’s credit score and help secure larger loans in the future, such as for a car or house.
Enslin warned of the downsides of having a negative credit score, including blocked credit cards, higher interest rates, and difficulty accessing loans.
“Adverse information can significantly impact an individual’s ability to make purchases or access credit during the festive season,” she cautioned.
To improve credit, she advised consistently paying bills on time, reducing debt, and sticking to a strict budget.
“I know sometimes, and I’ve been a part of that before. We’re like, oh, no, hold on. It’s a festive season. I’m not worried about this, for I’ll pay in January when I come back, and then January comes, and you don’t have the funds to do it. We’ve all been there, but unfortunately, do not do this if you want to keep a good credit score and improve it,” she advised.
Enslin also recommended using secured credit cards to build a positive payment history and regularly reviewing credit reports for errors.
“Credit reports for errors and disputing inaccuracies can help maintain an accurate credit profile. Once again, this is so important. It is free. You can come to the offices once a year to get your credit report. You can even get it if you send us an email with the information,” she revealed.
TransUnion’s Africa External Communications Manager, Natassia Badenhorst, highlighted that settled debts must be updated with credit bureaus, though credit profiles retain a 24-month history.
“This information will then display on your credit profile as paid up or paid in full. However, it is important to note that the credit profile will still display a history of 24 months. In the case of a judgement, the judgement can only be removed if it is set aside or rescinded in court,” she said.
