Do you know your credit behaviour patterns?

In simple terms, the higher your score is, the lower the risk you present to potential lenders - and, therefore, the easier it will be to get the loan you're hoping for. However, if you have a low credit score, it could result in much higher interest rates or even having your loan application turned down.

Good credit behavior

"If your credit behaviour is good and you pay the full amount owing on your accounts on time every month, this will be reflected in your credit report and it may help you to obtain more credit when you need it," says Maya Fisher-French, financial journalist and author of Maya on Money.

"But if your credit report shows that you don't always pay what you owe each month, it may work against you."

Anyone can forget or make a late payment occasionally, and this isn't the problem. It's when your credit report shows a pattern of late, partial or non-payments that it will affect your credit rating, which in turn could affect your chances of getting a loan. If this is the case, credit providers will offer you less favourable terms, such as a higher interest rate.

Negative behavior

A pattern of negative behaviour will reflect against your name for 24 months, while you can still remain a risk for up to five years or until you pay off the outstanding amount.

"Should your payment history show that you have defaulted, it's unlikely that you'll be able to obtain more credit - which leads to the idea of 'blacklisting'" says Maya. "It's therefore very important that you regularly check your credit record to understand your payment history and to spot any negative listings.”

Your savings goals

Research shows goals help to drive success in various areas of life such as your career and your health. When it comes to your financial future, goals are non-negotiable.

Setting realistic goals - like keeping track of your credit score - and staying focused on them means you have the best possible shot at saving and investing successfully.

Discovery Invest understands that everyone has their own personal needs and requirements. We give clients the freedom to choose from top local and international funds managed by leading fund managers. We provide investment solutions for every individual, regardless of their choice of investments, thanks to our wide range of investment funds.

You can get a quote from Discovery Invest here or ask your financial adviser about Discovery Invest Funds suited to your needs.