Providing an insight to credit scores and their importance, Al Baraka Bank credit manager Ebrahim Hoosen says: “A credit rating is more than a qualifying guide for finance. Many companies and even prospective employers can and will review your credit rating before providing you with services or offering you employment.
“Developing a sound credit status takes time, active management and does not provide for a quick fix at the time of submitting a credit application.”
A credit score is a numeric grade, or indicator by which consumers are rated by credit bureaus. These scores reflect your creditworthiness and are based on the individual’s credit history, taking into account defaults on payments, one’s level of credit and judgments against your name.
“In essence, the higher your credit score, the more creditworthy you are deemed to be, and you will, accordingly, enjoy a better chance of obtaining credit and preferential terms. Importantly, however, credit score bands differ between the various credit bureaus,” Hoosen says.