How to check your credit health

It pays to maintain your credit health, but how do you check it? Does it mean you have money left over at the end of the month? And what does your credit score mean?

The three digits that represent your credit score reflect some of the most important financial information about you, but most South Africans do not know their score or how to manage or improve it.

Your credit score is an indicator of financial reliability and lenders use it to determine whether you qualify for credit or other financial products and the interest you will be charged, Gavyn Letley, product head at loan provider, DirectAxis, says.

“A strong credit score creates opportunities, while a poor one limits them and increases borrowing costs. For example, a score of over 650 gives you an 85% chance of getting a home loan or vehicle finance approved.

“A score of 700+ on the other hand can mean you pay prime or below-prime interest rates, while a poor credit score could mean paying prime +3%, which considerably adds to the cost of a 20-year home loan.”

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Is your credit health excellent or poor?

However, according to credit bureau TransUnion, the average credit score in South Africa in 2025 is 612, with only 42% of consumers having a ‘Good’ to ‘Excellent’ credit rating while 41% of credit-active South Africans are considered high-risk borrowers.

Letley says it is not just credit providers who check your credit health before deciding if and how to do business with you. A poor credit score can potentially lead to a landlord rejecting your rental application or charging a higher deposit.

“People with higher scores may pay lower insurance premiums, while cellphone providers and companies that require deposits can offer better terms if you have a good credit history. Many employers also consider candidates’ credit scores as an indication of trustworthiness and reliability, particularly for financial or sensitive roles.”

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What your credit score says about your credit health

In South Africa, most credit bureaus use a credit score range of 0 to 999. The widely accepted bands are:

• 0 – 527: Poor: High risk. Lenders may decline credit or charge very high interest rates.
• 528 – 602: Below Average: Some credit may be available, but often with stricter terms or higher costs.
• 603 – 649: Average / Fair: Moderate risk. Possible to access credit, although not always at favourable interest rates.
• 650 – 699: Good: Low to moderate risk. Generally, qualify for credit at reasonable terms.
• 700 – 999: Excellent: Very low risk. Strong chance of credit approval and best available interest rates.

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How to check your credit health

Letley says you can check your credit health by checking your condition:

• Do a credit health check: Although credit bureaus are required to provide one free credit score a year, there are other ways to keep tabs on how well or poorly you are doing. There are free online tools to check your credit health as often as you like.
• Check your credit rating: Poor, getting there, good or excellent are available terms that are easier to understand than a three-digit score. Look for an explanation of how the rating is calculated, tracking it over time and information about what you can do to improve it.
• Look for anomalies: Credit bureaus occasionally make mistakes. By regularly checking your credit rating, you will see a sudden drop that may indicate something is wrong. If that happens, you can contact a credit bureau to find out if it is legitimate or an error. Another possibility is that someone is using your personal details illegally, opening accounts or borrowing money in your name. The sooner you find out about this, the faster you can react and minimise any damage.
• Take control of your credit health: Regularly checking your credit profile will enable you to see what is influencing the rating and help you understand how to improve it.

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Your payment record also affects your credit health

He points out that your payment record significantly influences your score. “If you are paying instalments, set up a debit order to ensure you do not forget or miss a payment. You can also use a banking app to schedule payments, making it easier to stay on track. Alternatively, put a reminder in your diary or calendar.”

Overdue accounts will negatively affect your credit score. Making some payments or paying it off completely will not clear your credit record but it will certainly improve it. Closing an account will not erase your payment profile. It will still be reflected in your credit score. This information can remain on your record for five years, Letley warns. 

“To improve your score, prioritise clearing debt and try to repay credit with the highest interest rates first. Limit revolving debt, such as credit cards.

“There are lots of reasons people do not check their credit health. They think it is too difficult or they fear what they might find. The reality is that with free online tools available, it is quick and easy to do and knowing your score puts you in a better position to maintain or improve it,” Letley says.