WHEN CREDIT IS DUE

This is how to boost your chances of getting that big loan approved

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YOUR credit score is a very important three-digit number. Yet, most South Africans don’t know their score, how to manage or improve it.

Lenders (who give you credit) use your credit score 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, explains that 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 percent chance of getting a home loan or vehicle finance approved.

A score of 700+ can mean you pay prime or below-prime interest rates, while a poor credit score could mean paying prime +three percent, which considerably adds to the cost of a 20-year home loan.

Yet, according to the credit bureau TransUnion, the average credit score in South Africa in 2025 is 612, with only 42 percent of consumers having a ‘good’ to ‘excellent’ credit rating. Meanwhile, 41 percent of credit-active South Africans are considered high-risk borrowers.

It’s not just credit providers who check your credit health before deciding if and how to do business with you.

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A poor credit score can potentially lead to a landlord rejecting a rental application or charging a higher deposit.