How to boost your credit score and save on borrowing

SOUTH Africans are significantly indebted, with a large portion of their monthly income going towards servicing debt.

- TINA MANYANYA

This means that for every R100 of disposable income, South Africans currently owe R62.70.

We've observed a combination of high interest rates, rising living costs, and slow income growth driving the high levels of indebtedness. This has led to a notable increase in overdue debt payments, particularly in unsecured loans and credit cards, as the average household debt-to-disposable income ratio stands at 62.7% as of the first quarter of 2025.

What your credit score influences

Your credit score is a three-digit number that reflects how reliably you manage your credit obligations. Lenders use it to determine whether you qualify for credit and what interest rates you will be charged. A higher score means you are seen as a lower-risk borrower, which often results in lower borrowing costs and greater access to credit.