The power of your credit score

THE three digits that represent your credit score reflect some of the most important financial information about you. Yet, most South Africans don’t know their score or how to manage or improve it.

- GAVYN LETLEY

Your credit score is an indicator of financial reliability. Lenders use it to determine whether you qualify for credit or other financial products, and the interest you will be charged.

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% 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 +3%, 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% of consumers having a ‘Good’ to ‘Excellent’ credit rating. Meanwhile, 41% 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. A poor credit score can potentially lead to a landlord rejecting a rental application or charging a higher deposit.