A practical guide to building a better credit score in South Africa - Finance365

It can also save you money through better interest rates and smoother approvals.

But here’s the truth: most of us were never taught how credit works. We learn the hard way, through declined applications, surprise fees, or a dip in our score we didn’t see coming.

The good news? You can take control - and it’s simpler than it seems. With a few smart habits and a clear understanding of the system works, anyone can build (or rebuild) a strong, healthy credit score.

This guide breaks it down in plain language, with the support of Finance365 to help you stay on track.

What a credit score really is, and why it matters

Your credit score is a three-digit rating that shows how reliably you handle debt. In South Africa, the major credit bureaus rate you between 0 and 999, and while their exact scoring models differ, they generally see your rating through these bands:

Here’s the basic breakdown:

• 800 – 950 [Excellent] - With a score here, you’re in the top range. Lenders see you as responsible when it comes to money, so you could enjoy quick approvals, low interest rates and bigger limits.
  
• 670 – 799 [Good] - This range shows you’re dependable. You’ll usually qualify for loans or contracts without too much hassle, and often on fair terms.
  
• 580 – 669 [Fair] - You can still get credit if your score is in this band, but it may come with higher costs or stricter conditions.
  
• 300 – 579 [Room to Improve] - This is the tough zone. Lenders see you as high risk, so approvals can be hard to get and borrowing could cost you more.

Your score is shaped by things like:

• Whether you pay bills on time
  
• How much of your credit you use
  
• How long you’ve had accounts
  
• Your mix of credit types
  
• How often you apply for new credit

That’s it. No mystery. No secret algorithm. Just behaviour that can be learned and improved.

Starting from scratch? Here’s how to begin safely

If you don’t have a credit record yet, you’re actually in a good place - you get to start the right way.

Try one (or more) of these:

• Open a store account and use it for small, low-cost purchases.
  
• Get a secured credit card, where your limit is based on a deposit - low risk, high learning.
  
• Become an authorised user on a trusted person’s card.
  
• Set up debit orders so payments happen automatically.

Your only job in the early days is simple: spend a little, pay it back, repeat.

Smart, proven habits that build your score

Once you’ve started, here’s how you move from average to excellent:

1. Pay your bills on time - always.

Even one late payment can dent your score for months. Consistency builds trust.

2. Keep your usage below 10%.

If your limit is R10,000, try to keep your balance under R1,000.

3. Don’t apply for too much credit at once.

Too many “hard inquiries” can make you look financially stressed.

4. Keep older accounts open.

Longer history = higher trust.

5. Have a mix of credit - responsibly.

Showing you can manage different types of credit helps boost your score.
If you’re consistent, you can start seeing improvement in as little as three to six months.

Staying on track: How to keep your credit healthy

Building credit takes a bit of effort. Maintaining it? That’s where conscious habits matter.

Here’s what to do:

• Monitor your score for free, as often as you like. - Traditional checks are yearly, but as a Finance365 user, you get unlimited, free access.
  
• Dispute mistakes - errors happen, and they can drag your score down.
  
• Pay down high-interest debt first.
  
• Avoid closing old accounts unnecessarily.
  
• Request limit increases carefully - only if you need them and can manage them.

Think of your credit score like a garden: steady watering, occasional pruning, and regular check-ins.

Common mistakes that can cost you

Some pitfalls are small but powerful. Avoid these at all costs:

• Missing payments
  
• Applying for too much credit
  
• Maxing out cards
  
• Closing old accounts
  
• Ignoring your credit report

These can push your score down and take months (or years) to undo.

Here’s how Finance365 can help you take control

Managing credit doesn’t need to be exhausting. Finance365 gives you simple, easy tools to stay informed and protect your financial health.

With Finance365, you can:

• See your credit score instantly
  
• Monitor changes over time
  
• Get alerts about inquiries or suspicious activity
  
• Access personalised tips to grow your score faster

It’s like having a financial coach in your pocket - one that keeps you ahead of surprises.

The bottom line

No matter where you’re starting - whether you’re brand new to credit or recovering from a rough patch - you can build a strong score. With awareness, consistency, and the right support, financial confidence is absolutely within reach.

Your credit score is not your worth.
It’s a tool - one you can learn to master.

Start now with an instant, obligation-free credit check. Free for life.
Visit Finance365 and start your journey with confidence.