How to Increase Your Credit Score: The Core Steps
Increasing your credit score in South Africa comes down to a handful of behaviours that the credit bureaus consistently reward. The single most important factor is your payment history. Paying every account on time, every month, signals to lenders that you are a low-risk borrower. Even one missed payment can drag your score down significantly and remain on your record for up to two years.
The second major factor is your credit utilisation ratio, which is how much of your available revolving credit you are actually using. As a rule of thumb, keeping utilisation below 30% is considered healthy. If your credit card limit is R10,000, try to carry a balance of no more than R3,000 at any point in the month.
Third, avoid applying for multiple credit products in a short period. Every hard inquiry, meaning a formal credit check by a lender, is recorded on your profile. A cluster of inquiries in a few weeks can suggest financial desperation and will temporarily lower your score. Space out any new applications by at least three to six months where possible.
Finally, length of credit history matters. Closing old accounts, even ones you no longer actively use, can shorten your average account age and reduce your score. Unless an account carries a fee you cannot justify, consider keeping it open with minimal activity.
Tip: Set up a DebiCheck-verified debit order for every account so that payments are deducted automatically on your salary date, eliminating the risk of forgetting.
Check Your Credit Report for Errors First
Before you can fix your credit score, you need to know exactly what is on your record. Under the National Credit Act, you are entitled to one free credit report per year from each of the four major bureaus: TransUnion, Experian, Compuscan and XDS. You can also use the National Credit Regulator's (NCR) registered credit bureau channels or platforms that aggregate your data from multiple bureaus.
When you receive your report, scrutinise every line. Common errors include accounts that have been paid up but are still listed as outstanding, incorrect personal details that could mean you are carrying someone else's debt, duplicate accounts, and default listings that are older than the prescribed retention period. Under the NCA, most adverse information may only be held for a defined period, typically one to five years depending on the type of listing.
If you find an error, you have the right to dispute it directly with the bureau at no charge. The bureau is obliged to investigate and respond within 20 business days. If the dispute is upheld, the incorrect information must be corrected or removed. Removing even one incorrect default listing can produce a meaningful jump in your score almost immediately.
Keep copies of all correspondence and, if a bureau fails to resolve a legitimate dispute, you can escalate to the NCR or the Credit Ombud.
Tip: Dispute errors in writing and keep a dated paper trail. If a bureau does not respond within 20 business days, reference Section 72 of the NCA in your follow-up.
Pay Down Existing Debt Strategically
Reducing what you owe is one of the fastest levers you can pull to improve your credit score. Two popular approaches are the avalanche method and the snowball method. With the avalanche method, you direct any extra money towards the debt with the highest interest rate first, saving the most money over time. With the snowball method, you pay off the smallest balance first, building psychological momentum.
For a concrete example: suppose you have a personal loan of R5,000 outstanding, with 6 months remaining and an effective annual interest rate of 27.5% (within the NCA cap for personal loans). Making only the minimum required payment may cost you considerably more in interest than making one or two larger lump-sum payments to clear the balance early. Even an additional R500 per month on top of your instalment can meaningfully reduce the total cost of credit and free up your credit profile sooner.
Focus particularly on revolving accounts such as credit cards and store cards. Because these are reported to the bureaus monthly with a live balance figure, paying them down has a near-immediate positive effect on your utilisation ratio, which in turn lifts your score within one to two reporting cycles.
Avoid consolidating debt by simply moving it to a new account without a plan, as the new hard inquiry and the appearance of a fresh account can temporarily lower your score before the benefits are felt.
Tip: After clearing a credit card balance, do not cancel the card immediately. Keeping it open with a zero balance actually improves your utilisation ratio.
Build a Positive Credit History if You Have Little or None
Having no credit history can be almost as limiting as having a bad one. Lenders have no data on which to base a decision, so many will either decline your application or offer their most conservative terms. Building credit from scratch requires patience, but there are low-risk, structured ways to do it.
One option is a credit-builder product offered by some South African banks and credit providers. These are small, secured facilities where you deposit an amount upfront and then repay it in instalments, with each on-time payment reported to the bureaus. Another option is a retail store account with a modest limit. Use it for small purchases you would make anyway, such as groceries or airtime, and pay the full balance before the statement date each month to avoid interest charges.
A secured credit card, where your credit limit is backed by a fixed deposit, is another tool some banks offer. The deposit reduces the bank's risk, making approval far more accessible even with no prior history. Every on-time payment is reported and contributes positively to your profile.
Remember that the NCA requires all registered credit providers to conduct an affordability assessment before granting credit. This protects you from being approved for more than you can realistically repay. Never borrow purely to build a score if the repayments will strain your budget.
Tip: Ask your bank specifically about credit-builder or "starter" credit products. They are designed for this purpose and typically carry lower limits to reduce overexposure risk.
Understand How Debt Review Affects Your Score and Your Options
If you are currently under debt review, your credit profile will be flagged accordingly, and you will not be able to access new credit while the process is active. This is a legal protection built into the NCA, administered through the NCR, to prevent over-indebted consumers from taking on more debt while restructuring existing obligations.
Debt review is not necessarily a permanent black mark. Once you have settled all restructured accounts and obtained a clearance certificate from your debt counsellor, the debt review flag must be removed from your credit profile at all bureaus. From that point, you can begin rebuilding your score using the strategies outlined in this guide.
It is worth noting that debt review, while disruptive to your credit score in the short term, can actually set the foundation for a stronger financial future. By the time you exit, you will have a track record of consistent payments on restructured accounts, and your debt-to-income ratio will have improved substantially.
If you believe you were incorrectly placed under debt review, or if a lender listed a debt review flag without following the correct legal process, contact the NCR or the Credit Ombud immediately. Incorrect flagging can be disputed and removed.
Tip: Do not pay any third party claiming they can "fast-track" your removal from debt review. The process is governed by the NCA and must follow prescribed legal steps.
Long-Term Habits That Keep Your Score High
Improving your credit score is only half the battle. Keeping it high requires embedding a set of financial habits that become second nature over time. The foundation is a realistic monthly budget that accounts for all your debt repayments before discretionary spending. Tools such as your bank's budgeting features, or a simple spreadsheet, can make this straightforward.
Monitor your credit profile at least twice a year. Reviewing your report regularly means you will catch new errors, fraudulent accounts opened in your name, or unexpected changes to your score before they escalate. Given the requirements of POPIA (the Protection of Personal Information Act), credit bureaus are also obliged to handle your data responsibly, but errors still occur.
Keep your financial commitments proportionate to your income. The South African Reserve Bank (SARB) adjusts the repo rate periodically, and because most South African credit products are priced relative to the prime lending rate, your repayments on variable-rate accounts can rise unexpectedly. Build a small financial buffer so that a rate hike does not force you to miss a payment.
Lastly, avoid standing surety or co-signing for loans for friends or family unless you are fully prepared to service that debt yourself. A default on a co-signed account will appear on your profile exactly as if you had taken the loan yourself.
Tip: Set a recurring calendar reminder every six months to pull at least one free credit bureau report and review it for accuracy.