Your Splendi credit score is a reflection of your creditworthiness. It is a calculation of all available data to XDS on how you spend, lend and pay back your debts.
1. PAYMENT HISTORY: 50% OF YOUR SPENDI CREDIT SCORE
Paying your bills on-time reflects well on your credit score. Your ability to diligently honour your financial commitments shows credit providers that your financial habits are in check. If you are already in arrears, it’s a good idea to make additional payments until all accounts are up-to-date. The impact of arrears on your score depends on the seriousness and the recency of your missed instalment. Consistent, punctual payment behaviour is a display of financial integrity.
ADVERSE RECORDS:
- Negative listings such as judgements and defaults can harm your score.
- Paying off all debt related to defaults is essential to improve your credit health.
- Once a default has been paid off, you can contact Splendi to mark it as ‘Paid Up’.
2. UTILISATION: LEVEL OF DEBT: 20% OF YOUR SPLENDI CREDIT SCORE
Discipline and credit usage go hand in hand. How you utilise borrowed money has a direct impact on your credit rating. Responsible credit management shows that you are a low risk to loan providers. It’s wise to keep your credit usage between 0% – 30%. Individuals with high balances and too much debt appear risky to lenders. Lowering your utilisation by paying off some of the debt can have a positive impact on your credit score.
3. LENGTH OF CREDIT HISTORY: 15% OF YOUR SPLENDI CREDIT SCORE
Your credit score can improve as your credit history ages, assuming that you make regular payments on your accounts. Before opening new accounts, ensure that you will be able to cover the potential additional instalments. Responsible long term usage shows that you have experience handling credit.
4. TYPES OF CREDIT USED: 10% OF YOUR SPLENDI CREDIT SCORE
It can have a positive impact on your score if you can manage a diverse debt range successfully.
Broadly speaking debt can be classified into:
- Instalment (personal loan, bond)
- Revolving (credit cards, store cards)
- Open accounts (cell phone account, insurance)
5. INQUIRIES: REQUESTS FOR NEW CREDIT 5% OF YOUR SPLENDI CREDIT SCORE
Each time you submit an application that requires a credit check – your credit profile is referenced. Splendi bypasses multiple hard inquiries by pre-approving registered users for loans, deals and offers. Checking and downloading your updated credit report has no impact on your credit score.
Keeping track of your payment history helps you plan your future credit decisions. That’s why Splendi gives you access to your 24-month payment history on all your open accounts.
