Good credit.

2min read
Posted 10 April 22

When you first set out into the world of credit, you may find it hard to secure any borrowing amount. That's because you won't have any, or at least minimal, repayment history to show. And the more expensive the item you want to buy on loan, the more critical it is to have a positive line of repayments. 


Collecting positive payment data.

Each time you make a payment, you're scored based on how you repaid your owing amount. The entire life cycle of your repayment history should start with an agreement for a certain amount of credit plus additional interest and end with closing an account that's fully paid.


Selecting the right credit provider.

Different providers will have different rates of interest, terms for non-repayment, and even differences in their establishing fees (a small fee added on when you open a loan or credit account). The amount you're allowed to borrow will generally have a limit, determined by the type of credit card offered and the amount of risk you pose as a borrower.

It pays to apply for a credit limit you know you can meet, and your card provider has to assess your affordability before approving you. Still, it's also up to you not to borrow to the limit and keep repaying your balance each month, plus interest. By doing this, you're adding to a good line of credit, which opens you up to larger amounts of credit in future.


You can also usually avoid paying interest on borrowed credit card amounts by paying back what you owe within a month. So as long as you can transfer funds over to your credit card, your purchase may cost as much as advertised, without the interest. These terms are specific to the type of card you get, so check the extra costs included before you sign on to a new credit card.


Stop! Disclaimer!

Info and tools on the Yonda website are to be used as a guide only and do not constitute financial advice. Use Yonda as a starting point and then seek professional advice.