How to improve your credit score in South Africa

What a credit score is, how the SA credit bureaus calculate it, how to get your free report and practical steps to raise your score.

• You're entitled to one free credit report a year from each registered credit bureau.
• Paying on time and keeping balances low have the biggest impact.
• Disputing wrong information is free, and the bureau must investigate.

What a credit score is

A credit score is a number the credit bureaus calculate from your credit record: your accounts, how you repay them, how much of your available credit you use, and any judgments or defaults. Lenders use it with an affordability assessment to decide whether to lend to you and at what rate.

Each bureau uses its own scale, so your score won't be identical everywhere. What matters is the trend and the information behind it.

Get your free credit report

The National Credit Act entitles you to one free credit report every 12 months from each registered credit bureau. You can request it on the bureau's website with your ID number. Check every account listed and make sure you recognise it.

Steps that actually move your score

There are no shortcuts, but these habits reliably improve your score over 3–12 months:

• Pay every account on or before the due date. Set up debit orders for the minimum payment.
• Keep credit card and store card balances below about 30% of the limit.
• Don't apply for lots of credit at once. Each application can leave an enquiry on your record.
• Keep older accounts that are in good standing open. A longer history helps.
• Settle accounts in arrears, or arrange a payment plan in writing.
• Check that your contact details and employer are correct on your report.

Disputing incorrect information

If something on your report is wrong, such as an account that isn't yours or a debt already paid, you can lodge a free dispute with the bureau. It must investigate and, if it can't verify the information, remove it. Keep proof of payment and settlement letters.

Paid-up judgments and adverse listings

Adverse information stays on your record for limited periods set by regulation. Once you pay a judgment you can apply for it to be rescinded. Anyone promising to 'clear your name' for a fee cannot remove accurate information. Be cautious.

How long does it take to improve a credit score?

Small improvements can show within a few months of on-time payments. Recovering from defaults usually takes a year or more.

Does checking my own score lower it?

No. Checking your own report is a 'soft' enquiry and doesn't affect your score.