How to get a good credit score

How to get a good credit score

As a consumer it’s vital to monitor your credit behaviour. You have a responsibility to ensure that you service your debt in full and timeously every month.  

What is a credit score? 

Every consumer who has some form of credit to their name is actively leaving a trail behind them which is used to compile a credit report of their behaviour. 

A credit score is a numerical summary of the information that is contained in a report. It is an indicator of the how well an entity has managed their agreements with creditors.  

In South Africa, statistics indicate that the average credit-active consumer is regarded as a high-risk borrower.  

Having a credit score that is higher than 720 is considered excellent and this is likely to land a borrower the best credit rates. Someone who score in this region is regarded as low risk, which means that lenders are more likely to be willing to offer them credit. 

A credit score is calculated by considering information in your credit report, such as:  

Payment history 


Length of time you’ve had credit 

If you find yourself in a position where you have an average or poor score, there are ways to improve, such as: 

  • Pay what you owe in full and on time 
  • Don’t apply for more than one loan at the same time 
  • Communicate with your creditors. If you can’t afford to make repayments, arrange with them to pay lower instalments. 
  • Keep what you owe lower than a third of your gross income. 

Whenever you access credit, make sure you have a plan for how you will repay it and that you are willing to uphold your end of the agreement.

Categories: Financial tips