Credit Scores in SA: How to Check and Improve Your Rating

They lower their voice and say, “I’m sorry, the system declined the application.”

It feels personal. It feels like you’ve been labelled. But in reality, it’s just a number doing the talking. In South Africa, your credit score is essentially your “adult report card.” It tells banks, landlords, and retailers how risky you are. If your score is high, they roll out the red carpet and give you prime minus interest rates. If your score is low, the door slams shut, or you get hit with interest rates that make your eyes water.

I’m Nolan, and I’ve seen good people with bad scores simply because they didn’t understand the rules of the game. The good news? A credit score is not a tattoo; it’s a snapshot. It changes. Today, we are going to demystify credit scores in SA, show you exactly how to check yours for free, and give you a tactical plan to improve it.

What Exactly is a Credit Score?

Think of your credit score as a “Trust Meter.” It is a 3-digit number calculated by Credit Bureaus (the main ones in SA are TransUnion, Experian, XDS, and Compuscan). They take all your financial behavior—how you pay your Woolies account, your credit card, your car loan—and feed it into an algorithm.

The result usually ranges from 0 to 999 (depending on the bureau).

• 0 – 579 (Very Poor): You are considered high risk. You will struggle to get credit.
• 580 – 669 (Fair): You might get approved, but the interest rate will be high.
• 670 – 739 (Good): You are a solid borrower. Competitive rates.
• 740 – 799 (Very Good): Banks want your business.
• 800+ (Excellent): You get the VIP treatment.

Understanding this number is a fundamental pillar of mastering personal finance in SA. You cannot effectively build wealth—whether through property or investing in unit trusts 101—if you are paying 24% interest on a vehicle simply because your score is “Fair” instead of “Excellent.”

How to Check Your Credit Score (For Free)

Gone are the days when you had to pay R100 to see your report. In South Africa, you are legally entitled to one free credit report per year from each bureau, but there are apps that let you check it monthly for free.

1. ClearScore (Uses Experian Data)

This is my top recommendation for ease of use. It’s a free app. It gives you your score, a summary of your accounts, and “Coaching” tips.

• Note: They make money by offering you credit cards or loans inside the app. You can just ignore those offers and use the data.

2. TransUnion (The “Official” Heavyweight)

You can get your free annual report directly from their website. Many banks (like Standard Bank and FNB) also show you your TransUnion score inside your banking app.

3. MyCreditCheck (Uses Experian)

Another solid, free option to keep an eye on your status.

Nolan’s Warning: Checking your own score is known as a “soft enquiry.” It does NOT hurt your score. You can check it every day if you want. It only hurts your score when a lender checks it (a “hard enquiry”) because you applied for credit.

What Influences Your Score? (The Big 5)

To improve your rating, you need to know what moves the needle.

1. Payment History (35% Impact)

This is the big boss. Did you pay on time?

• Missing a payment by just 24 hours can flag your account.
• Missing it by 30 days puts a “1” on your report (1 month in arrears).
• Missing it by 90 days? That’s a serious red flag.

2. Credit Utilization (30% Impact)

This is the secret weapon most people miss. It’s the ratio of how much credit you are using vs. how much you have.

• Example: You have a credit card limit of R20,000. You have spent R18,000.
• Your Utilization: 90%.
• The Message to Banks: “This person is maxed out and desperate.”
• The Goal: Keep your utilization under 30%. In this example, you should never have a balance higher than R6,000.

3. Length of Credit History (15% Impact)

Banks like stability. A Truworths account you’ve managed well for 10 years is better than a new Platinum Credit Card you opened last week.

• Action: Don’t close your oldest accounts, even if you don’t use them often. Keep them open to anchor your history.

4. New Enquiries (10% Impact)

If you apply for a loan at Capitec, then a credit card at Nedbank, then a store card at TFG all in one week, you look “credit hungry.” This drops your score.

5. Credit Mix (10% Impact)

Banks like to see you can handle different types of debt: a revolving account (credit card), an instalment account (car/personal loan), and a service contract (cellphone).

Step-by-Step Guide to Improve Your Rating

So, your score is in the “danger zone.” How do we fix it?

Step 1: The “Dispute” Clean Up

Errors happen. A study found that a significant number of credit reports contain mistakes. Maybe you paid off that Edgars account three years ago, but it still shows as “Active” or “In Arrears.”

• Action: Look at your report. If you see an error, log a dispute with the Bureau (TransUnion/Experian). They have 20 business days to investigate and resolve it.

Step 2: The 30% Utilization Hack

This is the fastest way to boost a score. If your credit card is maxed out, pay it down to below 30% before the statement date.

• Why? The bank sends the data to the bureau on the statement date. If your balance is low on that specific day, the bureau thinks you are a low-risk user, even if you use the card during the month.

Step 3: Automate Everything

Set up a debit order for the minimum amount on every single account. You can always pay more manually, but the debit order ensures you never get that accidental “missed payment” flag because you forgot or got busy.

Step 4: The “Credit Builder” Strategy

If you have no credit score (because you’ve never had debt), you need to start small.

1. Open a small store account (e.g., Woolworths or Mr Price).
2. Buy something small (like socks).
3. Pay it off over 6 months (don’t pay it all at once immediately, or you don’t build a payment history).
4. Pay the monthly fees (yes, it costs a bit in fees, consider it the price of buying a credit score).

Myths About Credit Scores in SA

There is a lot of “braai talk” advice that is just plain wrong. Let’s bust some myths.

Myth: “I am blacklisted.” Fact: Since 2011, the term “blacklisting” is technically obsolete. Bureaus hold positive and negative data. You aren’t on a “list”; you just have a score that reflects your history. Even with a judgment, you can rehabilitate your score over time.

Myth: “My salary affects my score.” Fact: Your credit report does not know how much you earn. It only knows how you manage debt. You can earn R50,000 a month and have a terrible score, or earn R5,000 and have an excellent score.

Myth: “Closing accounts improves my score.” Fact: As mentioned, closing old accounts reduces your “available credit” (hurting utilization) and shortens your history. Keep them open with a zero balance.

The Role of the Credit Ombud

If you have tried to dispute an unfair listing on your credit report and the bureau ignores you or rejects you, you have a powerful ally: The Credit Ombud. This is a free service that mediates disputes between consumers and credit providers/bureaus. You can find out more about lodging a complaint on the Credit Ombud website.

The Long Game

Improving credit scores in SA is not an overnight fix. It takes 3 to 6 months to see significant movement. But the reward is massive. A difference of 50 points on your score can save you hundreds of thousands of Rands in interest on a home loan over 20 years, making it a crucial factor in the renting vs. buying the eternal South African debate. Start today. Download ClearScore. Check your status. Pay down that one credit card. Future you will thank you when you’re driving that new car off the lot with a smile and a prime interest rate.

Start today. Download ClearScore. Check your status. Pay down that one credit card. Future you will thank you when you’re driving that new car off the lot with a smile and a prime interest rate.

FAQ: Common Credit Score Questions

Does checking my own credit score lower it? No. Checking your own score is a “soft enquiry” and has zero impact on your rating.

How long does negative information stay on my record? Generally:

• Missed payments: 2-5 years.
• Judgments: 5 years (unless paid up and rescinded).
• Insolvency/Sequestration: up to 10 years.

Can I get a loan with a bad credit score? Yes, but be very careful. Lenders who target people with bad credit often charge the maximum legal interest rates and high administration fees. It is often better to wait and improve your score first.