Credit scores and how to improve them

Your credit score can feel like a mystery number that controls your financial life. Understanding it is the first step to taking back control.

What it is

A credit score is a number that reflects how reliably you have repaid money you have borrowed in the past, such as store accounts, credit cards, vehicle finance or home loans. In South Africa, credit bureaus such as TransUnion, Experian and Compuscan calculate this score using information reported by banks, retailers and other credit providers. Lenders use your score to decide whether to approve you for credit and what interest rate to charge. A low score does not mean you are a bad person with money. It usually reflects specific, fixable patterns like missed payments or high debt levels relative to your income.

Signs to notice

• You have been declined for credit or offered only very high interest rates.
• You are not sure what is currently listed on your credit report.
• You have accounts in arrears that you have lost track of.
• You have never checked your credit report for errors, which are more common than people expect.
• You feel anxious or ashamed whenever the topic of credit comes up.

What helps

• Request your free annual credit report. South African law entitles every consumer to one free credit report per year from each registered credit bureau.
• Check the report carefully for errors, such as accounts that are not yours or debts that have already been settled but still show as outstanding.
• Pay accounts on time, even the minimum amount, since payment history has a strong influence on your score.
• Keep your credit usage low relative to your limits. Using a large portion of an available credit limit can lower your score even if you pay it off each month.
• Avoid applying for multiple new accounts in a short period, as each application can be recorded and may affect your score.
• Settle old, small debts where possible, since unresolved accounts can weigh on your score even years later.
• Be patient. Credit scores improve gradually with consistent behaviour, not overnight.

When to reach out for help

Seek support if you feel overwhelmed by debt, if creditors are contacting you frequently, or if worry about money is affecting your sleep, relationships or work performance. You do not need to solve this alone.

Getting help in South Africa

Cleared Mind's EAP counsellors can help you manage the stress and shame that often come with financial difficulty. For practical support, a registered debt counsellor (registered with the National Credit Regulator) can help you understand your options, including debt review. The credit bureaus also offer guidance on how to dispute incorrect information on your report.