Building your credit score from zero can feel scary, but it can also give you a sense of achievement.
You know, that feeling when you landed your first job and were finally able to buy the thing you’d always wanted. It’s an empowering moment that sets the stage for exciting future financial opportunities.
But how do you go from zero credit to credit hero? Our Finance365 team shares first-hand tips on how to build your credit score fast while avoiding common mistakes.
Your foundation for a strong credit score
The basis of building your first score is that it’s a process that needs consistency and smart financial habits. Thinking about it differently, if you have no credit history, you have a clean slate from which to establish strong credit habits.
HERE’S HOW TO GET STARTED RIGHT:
1. Open a credit card
A well-managed credit card is one of the ways to build up a healthy credit profile. If you open a credit card with a small limit, use it for small purchases and pay off the balance in full each month to establish a strong payment history.
2. Set up debits or reminders
Payment history makes up 35% of your credit score, so paying bills on time is crucial. Even one late payment can significantly drag your score down. Set up automatic payments or set yourself reminders to ensure you never miss a due date.
Tip: If a payment due date falls on a Saturday or Sunday, pay the invoice by the Friday before that weekend.
3. Become an authorised user
Ask a family member with a good credit history to add you as an authorised user on their credit card. Their positive credit habits can help boost your score.
4. Keep credit use low
If you have a credit card or store card, the amount of available credit limit you use is called credit utilisation. Don’t overuse your credit or account limits and to improve your score, stay below 50% usage. For example, if your credit limit is R2,000, try not to carry a balance higher than R1,000 or even better is to settle it in full every month.
5. Pay close attention to your credit report
Errors on your credit report can stall your progress. Check your credit report regularly to correct inaccuracies. Finance365 offers free, no-obligation credit checks to help you stay on top of your score.
In addition, don’t apply for too many credit accounts because every time you apply for credit, a hard inquiry is added to your report and too many of these types of inquiries can lower your score. Don’t forget though that if you check your credit score with Finance365, it’s not considered a hard inquiry but rather, a soft inquiry, which does not negatively impact your score.
Also remember that the length of your credit history is considered by credit bureaus when they calculate your credit score. Keeping older accounts open can help maintain a strong score.
FEELING LIKE IT’S TAKING TOO LONG? HERE’S WHAT TO KNOW:
If you feel like your credit score isn’t improving fast enough, don’t feel down or give up. Credit building is a marathon, not a sprint.
The following are broad estimates of how long it could take for you to reach key score milestones (dependent on how consistently you apply the above guidance):
| Milestone | Timeline |
| Establish an initial score | 3-6 months |
| Build a “fair” score (580-669) | 6-12 months |
| Achieve a “good” score (670-799) | 12-24 months |
| Reach “excellent” credit (800-950) | 2-3 years |
While progress can feel slow at times as you take the steps to secure your score, by taking the right steps early and avoiding common mistakes, you have the potential to build up your credit score not only faster but more sustainably.
So, stay patient, be vigilant and keep going with good credit habits, and track your progress with us. Use our free credit score checks and once your score’s up and running, keep checking in to see small, steady improvements.
When all is said and done, building your credit score is quite possibly one of life’s most rewarding journeys as it can support you in buying your first big-ticket item with your hard-earned money with pride, joy and financial confidence.
Undoubtedly the moment you get your first credit score is a big achievement! It’s worth the work!
Take the next step by checking your credit score today! Don’t forget to leverage Finance365’s free alert service to stay on top of changes while you improve it.
Whether you’re saving for a new car, planning for a dream home or gearing up for a once-in-a-lifetime vacation, Finance365’s unlimited “soft” credit checks won’t impact your score and can help you reach your goals faster.
Start your journey toward better credit right now. Take control with Finance365 and open the door to the future you’ve always wanted.
