Your credit score matters. Here’s what each band on the credit score scale means and three simple steps you can take to move up the scale.
Your credit score is a number that shows how you handle money. Lenders like banks, landlords and even cellphone companies look at it before saying yes to your credit application.
The higher your score, the more likely you are to get approved and the better the deal you’ll be offered.
WHAT THE NUMBERS MEAN:
In South Africa, credit scores are usually between 300 and 950. A score from 670 upwards is considered good and the key to start getting it there is to know what each credit band means.
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.
| Category | Fair Score | Excellent Score |
| Loan Approvals | Possible, but limited approvals | High possibility of being approved |
| Interest Rates | Higher rates applied | Lower rates likely |
| Credit Limits | Smaller amounts likely | Larger, more flexible limits possible |
| Rental/Service Contracts | May need to pay deposits upfront | Easier, fewer payment conditions likely applied |
Fair vs. Excellent
The bottom line is the higher your score is, the higher you can climb towards reaching your financial goals.
But the most important thing to know is your credit score isn’t stuck in just one band. It can change and you can take simple actions to make this happen.
3 easy steps to lift your score
1. Pay on time
Late or missed payments hurt your score. Set up debit orders and reminders to make sure that every payment goes off your account on time and check this is happening correctly on debit days.
2. Use less of your credit
Try not to use more than 20% of your available limit. For example, if your card limit is R10 000, keep what you owe below R2 000.
3. Keep old accounts open
Accounts you’ve managed well for years add stability to your profile. Even with a zero balance, keep them open to show your good track record.
OTHER FRIENDLY SCORE TIPS:
- Checking your own score more than once a month doesn’t lower it.
- Too may credit applications at the same time can bring it down.
In short, things like paying your bills late, maxing out your store cards or forgetting to check your report can be enough to push your score down. But on-time payments, low account balances and a long-term credit track record can move you from “room to improve” to “fair” and confidently on to the “good” and “excellent” bands.
Get your free Finance365 credit report today. Track your progress and take the small steps that make a big difference.
