Do You Know Your Credit Report?

 

November 17, 2021

 

Photo by: Google photo

 

Credit Report, this is Jamaica some may say, but in Jamaica we definitely use a Credit Report. Now that you know we do, you may be asking, what is a Credit Report? This is a report that is generated by the Credit Bureau of Jamaica that determines your negotiation power when going for loans at any bank in Jamaica.  

Your Credit Report is built upon your bill paying habits, loan repayments, such as student Loan (SLB), Credit Cards or any other institution that you are obligated to make a repayment to.  

 

The credit standard you have will impact your negotiation power. The different types of Credit standards are: Good, Average and Bad. A Good credit report allows you to negotiate how much your monthly payment will be, average gives you the standard that the intuition is giving and poor gives you the highest pay back that the intuition is giving.  

 

 

TIPS TO GET OR MAINTAIN AN EXCELLENT CREDIT REPORT: 

 

 

 

Pay your Bills on Time 

Sometimes when we get our utility bills we wait until a week after the due date has passed before we pay. No, that’s a bad practice that can contribute to damaging your Credit. If your bill is due the 28th of the month, try to pay before the deadline or on the date stated. We sometimes know that after a bill is due, we get a one-week grace period, so we capitalize on the grace period allocated, stop doing that. Pay your bills when they are due and it's even better to pay before. 

 

 

 

Increase Repayment Amount

 

Another way to increase or maintain excellent credit report is to increase the amount when making repayment. For example, if you have a Student Loan repayment, increase the amount mandated, if you can, to finish paying it off before the set date.    

 

 

 

Manage Your Obligation Properly

 

Late payment or not paying higher purchase obligations are fast becoming the norm. This is stealing and will damage your credit. Avoid taking higher purchase if you can pay with cash. If not respect the commitment made with the institution that you credited from on higher purchase, by repaying. 

 

As young professionals, an excellent or a poor credit report can be the difference between getting a loan at the lowest pay back rate or at the highest. The next time you receive a bill, remember in the near future you might need to take a car loan, a home loan or an unsecured loan. Your failure to live up to your obligations can be to your detriment. Let’s pay our bills and pay them on time.  

 

Written by: Stephanie Baldeo