How can you build up a good credit rating profile?

Credit is there to help when you cannot afford something, but you should always be smart about using credit to ensure that it remains your friend and not become your enemy.

- Ayanda Ndimande, strategic business development manager for retail credit at Sanlam

Ayanda Ndimande, strategic business development manager for retail credit at Sanlam, says smart credit habits can save you a significant sum of money over time and support your financial health.

"Credit is a natural and necessary part of our financial lives. The trick is to get smart about it and to take control to ensure credit serves our interests and our future, not the other way around. Now's the time to build your credit confidence."

She suggests five strategies to guide you to smarter credit habits:

Understand your credit report

Your credit report is the foundation of your credit score and can influence your ability to secure loans, mortgages and even rental agreements, Ndimande says.

"By law, South Africans are entitled to one free credit report each year. Take time to review it thoroughly and look out for inaccuracies. If you find any discrepancies, dispute them promptly. Understanding the specifics of your credit report empowers you to address issues that could negatively affect your score."