Between juggling daily work deadlines and consistent personal commitments, we know that your credit score may be the last thing on your mind. At least, until the moment you apply for a loan, when it becomes the one measure that matters most.
It’s important to check your credit score and credit report regularly. But even more so, it’s helpful to know whether your score qualifies as a good credit score in South Africa and what to do from there, i.e. how to keep it that way or, better still, improve it.
WHAT IS A GOOD CREDIT SCORE IN SOUTH AFRICA?
In South Africa, credit scores typically range from 300 to 880. A score from 670 upwards is considered good. But this number is more than just digits on a credit provider’s data, as it tells the story of how you’ve managed credit over time.
Here’s a quick breakdown of the credit categorisation bands to help you understand how credit providers and companies like insurers and cellphone providers may view your score:
800 – 950: Excellent
You’re the gold standard. This score can unlock premium credit offers, lower interest rates and fast approvals.
670 – 799: Good
You’re seen as dependable and will likely qualify for loans with fair to favourable terms.
580 – 669: Fair
You’re still eligible for credit, but credit providers may offer higher interest rates and stricter conditions.
300 – 579: Room To Improve
This score suggests that you are a high credit risk. You may struggle to qualify for credit, or you’ll be charged more to borrow money.
What affects your credit score?
Your score also isn’t random but is built on data from your credit report. Each bureau uses its own weighting system, but what generally counts across all credit bureaus is:
Payment history (35–40%): Always pay your bills on time, from your store accounts to your cellphone bill. Even one late payment can bring your score down.
Credit utilisation (30%): Don’t max out your cards or store accounts. Keep your balances low and try to use less than 20% of your total credit limit.
Length of credit history (15%): Older accounts that are in good standing help. Think twice before closing that long-held shop account that you don’t use.
Credit mix (10%): A variety of accounts, like a credit card, insurance policies and cellphone contract, shows you can manage different types of credit.
New credit applications (10%): Don’t open lots of new credit lines at once. Too many credit enquiries in a short time may signal financial strain.
Top Tip: If your score is in the good to excellent range, the goal is to keep it there. Not to reach it once and forget about it. Good credit health is an ongoing habit.
How can you secure your best credit score?
It’s simple. Services like ours at Finance365 let you check your XDS credit score and provide useful insights into what’s helping or hurting it.
In summary, a good credit score in South Africa typically starts around 670, but there’s ample room to strengthen it (even from there) as you can reach up to 950. To achieve your best score, consistency is your best friend, and the great part is you have another friend in Finance365. We’re on your side!
With our credit experts alongside you, you can check your score, track your progress, and get personalised tips to keep moving in the right direction. This will equip you to stay consistent in managing your credit profile so that when you’re ready for your next big moment, your score will be too.
Have you checked your credit score recently to find out if it’s good and how it can be improved to support your dreams? It’s quite easy, and completely free with Finance365. We’ll even keep you updated with free alerts to stay on top of changes while you improve it.
Remember that Finance365’s unlimited “soft” credit checks won’t impact your score and can help you reach your goals faster.
Don’t hesitate or delay. Take your next step toward better credit right now.
