Four Tips to Help Improve Your Credit Score: A Cornerstone of Financial Literacy

Celebrating Financial Literacy Week in Zambia

As we celebrate Financial Literacy Week, we’re reminded of the critical importance of financial education in today's world. 

This year's theme — Protect Your Money: Protect Your Future — focuses on fostering a responsible, informed and forward-looking approach to financial decision-making. It highlights why we must be smart with our money and get into the habit of making financial decisions that help us build, protect and improve our financial security.

Zambian consumers and financial literacy

In Zambia, there's a growing recognition of the value of financial literacy, but we still have a long way to go. 

World Vision Zambia, in particular, is concerned about the low levels of financial literacy among both women and men in rural areas, and talks about the need for gender-inclusive financial literacy training. This is one way we can support inclusive growth, financial resilience and better gender equality outcomes.

The role of credit bureaus

Understanding what a credit bureau is and does is essential for improving financial literacy. 

As a credit bureau, TransUnion collects and keeps credit (and other relevant) information on consumers to help provide a robust view of how they each manage their money. We also conduct research to help businesses and organisations understand consumer trends, sentiments and behaviours. 

Insights from our latest research

For instance, our latest Consumer Pulse Study  revealed a mixed reality for Zambians:

• Despite 38% experiencing income growth and 82% being optimistic about future increases, many feared rising living costs and loan expenses
• To manage financial strain, 43% used instalment payments; 29% considered borrowing from family and friends; a third might tap into savings; and 39% planned to cut down on non-essential spending
• There was a dip in credit market confidence: Where 96% valued credit access, only 30% felt it was adequate, and 62% were hesitant to seek new credit because of high interest rates
• Cybercrime was a major concern with 76% experiencing fraud attempts — driving 95% to be more careful with their personal data

Four tips to improve your credit score

• In a rapidly changing world full of unpredictable events, knowing where you stand financially helps you make better decisions and take positive steps toward fortifying your financial health. Here are four tips that can help everyone:
• Know how much you owe: Understand your credit limits and how much you owe on each account so you can better plan to pay off your balances
• Pay your bills on time: Regular, timely payments are crucial to building or maintaining a good credit score
• Stick to a budget: Effective budgeting can help you manage finances and pay off bills on time
• Regularly check your credit report: Get your free credit report once a year to spot and correct any inaccuracies 

These strategies are vital for anyone looking to enhance their financial literacy and creditworthiness.

Contact your credit bureau today

Once you're aware of your credit score, improving it becomes your next goal.

Your TransUnion Zambia credit bureau provides services to help understand and improve credit scores. You can get your free credit report or resolve queries by calling TransUnion Zambia at 260211234760, 260211220536 and 0955985307 or by emailing CustomerCareZM@transunion.com. For in-person help, our office is on the 5th Floor of Sun Share Tower, Plot No. 15584/1, Katima Mulilo Road, Olympia, Lusaka, Zambia.