How to make your credit record good
Having a good credit record isn’t about being rich. It’s about how well you manage the money you already have and showing you can handle it responsibly.
But good credit doesn’t happen overnight. It grows with small, steady habits that show credit providers and banks you can use and repay money wisely.
The need for building credit in South Africa touches almost everything in daily life, from getting a phone contract to buying a car or renting a flat. So, putting tips on how to build credit into practice is one of the best ways to strengthen your financial future.
HERE ARE 10 TIPS TO GET YOU STARTED:
1. Buff up on your credit knowledge: Credit is essentially borrowed money you agree to repay. Each time you use a loan, store account or credit card, that activity is recorded by South Africa’s credit bureaus. Their records inform your credit report and score.
2. Remember what shapes your score: Things like paying your bills on time and having a few well managed accounts make a big difference in building up your best credit record.
3. Get started and stay steady: If you’re not sure where to begin, you could open one simple account that you trust yourself not to overspend on and pay it on time every month. This kind of consistent track record will help you build a strong record faster.
4. Grow from small to big: You could think of it like this: credit works like fitness. You build your strength slowly, but surely, with regular exercise. Managing a small account well can help you qualify for bigger things later, like a car loan or home finance.
5. Use less than you have: Try to use under 10% of your limit. If your card limit is R10 000, spend less than R1 000. Your credit utilisation management shows potential credit partners that you manage credit carefully, not that you depend on it.
6. Basics like paying on time count: Even one late payment can bring your score down. Don’t let life get in the way of this admin. Set reminders or debit orders so your payments happen automatically.
7. Let old accounts work for your good: A longer credit history really helps your credit stay in the good zone. Don’t close your oldest account. Use it for small, easy payments to keep it active.
8. Build your credit story in other ways: You can build credit without a credit card even by paying rent, phone or insurance bills in your own name. It’s about putting your name to your most responsible money management behaviour.
9. Keep your digital payments clean Credit providers and banks also look at how you manage mobile and online payments. Once again, consistent and on-time transactions can tell them you’re trustworthy with money.
10. Check your credit report often This is an important tip! Track your progress. Credit report monitoring is not just about checking a score. It is about learning from it. What’s great is you will see how your regular money management habits can improve your score.
Because good really can become great when you pay regular attention to your credit. And the best time to start is now. It’s easy. Check your score, get your free report and grow your credit and your finance confidence.
As when your credit grows, your goals grow too.
Need to improve your credit score? Read more in our article, “7 simple ways to fix a your credit score“.
