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

- TINA MANYANYA

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.

Understanding your credit score is one of the most powerful steps you can take towards financial confidence. It does not just affect whether you can borrow money, but also the cost of that borrowing. Small, positive changes in your financial habits can make a big difference over time.