The three digits that make up your credit score reveal some of the most important information about your financial health.

Yet most South Africans don’t know their score or how to manage or improve it.

Your credit score reflects your financial reliability.

Lenders use it to assess whether you qualify for credit and what interest rate you’ll be charged.

According to Gavyn Letley, product head at specialist loan provider DirectAxis, a strong score unlocks more opportunities, while a weak one limits them and increases the cost of borrowing.

“The differences can be significant. A score above 650 gives you an 85% chance of being approved for a home loan or vehicle finance. A score of 700 or more may qualify you for prime or even below-prime interest rates.

“By contrast, a poor score could result in paying prime +3%, which adds substantially to the cost of a 20-year home loan,” said Letley.

Despite the benefits of maintaining a healthy credit profile, many consumers are falling short.

TransUnion reports that the average credit score in South Africa for 2025 is 612. Only 42% of consumers fall into the ‘good’ to ‘excellent’ category, while 41% of credit-active citizens are classified as high-risk borrowers.

And it isn’t only lenders who consider your credit score. A low score can lead to a landlord declining a rental application or demanding a higher deposit.

Insurance companies often charge higher premiums to people with lower scores, while cellphone and service providers may impose stricter terms. Some employers, particularly in financial or sensitive fields, also review credit scores as part of background checks.

In South Africa, most credit bureaus use the following credit score categories, based on a scale from 0 to 999:
• 0–527: Poor
High risk. Credit is often declined or offered at very high interest rates.
• 528–602: Below average
Credit may be available, but usually at a higher cost or with stricter conditions.
• 603–649: Average / fair
Moderate risk. Credit is accessible but not always at favourable interest rates.
• 650–699: Good
Low to moderate risk. Generally eligible for credit at reasonable terms.
• 700–999: Excellent
Very low risk. Strong approval rates and the best interest offers.
Given how influential your score is, how can you understand your credit health and what should you do if it needs improvement?

Start with a credit health check

While credit bureaus must provide one free score per year, digital tools make it easier to monitor your credit more frequently.

Free platforms let you check your rating as often as you need. Pulse gives you a clear rating, along with an explanation of how it’s calculated, how it changes over time and what steps you can take to boost it.

Watch for anomalies

Errors do occur in credit reporting. Regular monitoring can help you spot sudden drops that indicate mistakes or fraudulent activity. If something seems off, contact the bureau to verify the information.

Fraudsters sometimes open accounts using stolen personal details, and catching this early can minimise the damage.

Letley notes that many people mistakenly believe that checking their score online will harm their profile. While ‘hard’ checks, such as those conducted by banks, can affect your score, checking via tools like this does not.

Take control of your credit health

By reviewing your profile regularly, you can identify what’s pulling your score down and what you can do to raise it.

Payment history has a major impact, so set up debit orders or scheduled payments to avoid missing instalments. Even manual reminders can help ensure consistency.

If you have overdue accounts, settling them either partially or in full won’t erase your history, but it will improve your profile.

Closing an account also does not remove its payment record, which may remain on your profile for up to five years.

To strengthen your score, focus on reducing debt, especially high-interest credit and limiting revolving credit such as credit cards.

“Many people avoid checking their credit health because they think it’s complicated or fear what they’ll discover,” said Letley.

“But with free online tools, it’s quick, easy and empowering. Knowing your score puts you in a better position to maintain or improve it,” said Letley.