How to improve my Credit Score in South Africa

How to improve my Credit Score in South Africa

If you’re planning on applying for a home loan then you need a healthy credit score in South Africa. Learning to maintain a positive debt-to-income ratio from a young age can lead to you being eligible for financial products like credit cards or home loans.

If you want to understand what is a credit score or learn how to improve credit score if you have no job, then you’ve come to the right place.

What is a Credit Score in South Africa

A credit score is a ranking between 0-999. Your credit history will be determined by the amount of money you have borrowed in your life and how much of it you have diligently paid back on time.

The higher your credit score, the lower the risk you pose to a lender. You should aim for a credit score of 650+

How is my Credit Score calculated

Your credit score in South Africa is calculated by a credit bureau based on your credit report. They consider how much you make, if you pay your bills on time, how much debt you have, and most importantly, how all of that compares to other credit-active consumers.

ScoreCredit Score 
650+ExcellentThese individuals will easily obtain credit and receive very low-interest rates.
600 - 650Very goodThese borrowers can get the best loan programs and offers at a good rate.
550 - 600Good Individuals with this score will receive good deals at an acceptable rate.
490- 550Sub-primeThese people may struggle to get a loan and their interest rates will be higher.
490 and belowPoor Individuals in this category may not qualify for loans and should focus on improving their credit score.

Why you need to know your credit score in South Africa

Credit Reports contain personal information including addresses, phone numbers and employment details. With the high rates of cybercrime In SA, the possibility of someone using your national ID to clone their profile and open lines of credit is high.

If you check your credit score ever 3-6 months like it’s recommended you can pick up fraudulent transactions

A typical Consumer Credit check returns the following information:

  • Defaults and judgements, if any
  • Notices (e.g. sequestrations), if any
  • Address and job histories
  • Previous inquiry histories
  • And several other items

How to check your Credit Score in South Africa

If you’re wondering. how to check my credit score south Africa, the best free online websites that offer one free credit report per year are:

How to build a credit profile in South Africa

In simple terms, the best way to have a financial profile is through debt. Credit scores in South Africa are calculated through your credit habits. Financial Institutions need data to give you a credit score.

As a student, it might be hard to improve your credit score and most people fall into the trap of clothing accounts.

You can apply for financial products where you can start building a credit record:

  • Credit card
  • Vehicle finance
  • Phone contract
  • Clothing accounts

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