Why you should get started today

Many South Africans are unaware of their credit scores. They either think that it’s an American phenomenon, which doesn’t apply here, or they believe a credit score is not relevant to their lives. However, this is ultimately not true.

When you need financial products, such as credit cards or loans, or when you have to prove that you’re financially responsible, such as when you’re being vetted for a lease agreement, you will quickly realise how important your credit score is.

It plays an instrumental role in the interest rate and credit limit you’re offered, though lenders also weigh your income, existing borrowing and whether the repayments are affordable.

When it comes to your credit score, you need to be proactive and kick it into decent shape before you need to rely on it. It can take months to grow, so you should pay attention to this long before you need it for an important purchase.

You can monitor your credit score on ClearScore - for free - as often as you’d like. Simply sign up, and check your report for how to improve.

Step-by-step guide to forge your score

Your credit score is your responsibility. There are proven steps that can help you build it over time, and you need to take action sooner rather than later. Here are the go-to steps you should consider:

1. Find out what your credit score is

The first step is the easiest step. You can’t work on something you have no knowledge of, so you need to gain access to your credit score and report. By doing this, you will be able to see what your score is, and which factors have influenced it.

Find out more:What is a good/bad credit score?

Among other things, your credit report will outline your payment history, how much you owe, and which accounts you have open. Through ClearScore, you will also have access to an interactive timeline of your credit history over time.

2. Pay the accounts you already have

Without realising its relation to your credit score, you may already have accounts open that contribute towards your credit score. For example, if your cellphone contract is in your name, then it’s already helping you build your score.

On your credit report, you will be able to see which accounts are contributing towards your score. If you want to grow a healthy credit score, you need to make sure you stay on top of the accounts you already have.

Besides this, you should note that there’s a misconception that your utility bills will contribute towards your credit score. This is not the case. However, your provider will report you to the credit bureaus if you miss your payments. Therefore, you should always make sure you pay your utility bills on time.

3. Open accounts that will grow your score

If you realised that you don’t have a credit score yet, or you have an average or bad score and you want to improve it, then you need to consider opening the following credit accounts:

• Cellphone contract: Make sure that this is in your name, and that you meet all of your monthly payments. It’s an easy way to build your credit score. Get started

• Insurance: Insurance approval generally doesn't depend on your credit score, and your provider may report your payment behaviour to the bureaus. On ClearScore, we provide access to car and funeral insurance. Get started

• Store cards: Unlike credit cards, these are often open to people with little credit history, though approval still depends on the provider's checks. It’s the perfect opportunity to purchase something small and prove your reliability. Get started

There are several other credit-bearing accounts you can apply for through ClearScore (a credit broker, not a lender). Sign up or log in to find out which offers match your current credit score.

Which starter account should you open first? A side-by-side comparison

If you have no score at all, the account you open first matters more than how many you open. When comparing starter accounts, useful factors include whether the account reports to the credit bureaus each month and whether you can comfortably afford it for at least a year. What you'll be approved for, the cost and what suits you depend on the provider's own checks and your circumstances. The table below compares the realistic options in South Africa so you can choose on evidence rather than guesswork.

How to read the table: approval odds vs score impact vs risk

Work from left to right. Start with what you will actually be approved for, then check that it reports to the bureaus - an account that does not report builds nothing. Finally, weigh the risk column against your budget. For most people starting a credit score from zero, a cellphone contract in your own name plus one insurance policy paid by debit order can be enough to generate a score within a few months, without meaningful cost or debt.

A note on affordability assessments under the National Credit Act

Every credit provider is legally required to complete an affordability assessment before granting credit. Expect to supply payslips or three months of bank statements, and expect a small first limit. This is normal for a thin file and is not a rejection of you personally - the limit grows as your repayment record grows.

What not to open first

Avoid payday-style short-term loans as a deliberate score-building tool: the cost is high and lenders reading your report later can see the account type. Just as importantly, do not apply to several providers in the same week hoping one says yes. Each application leaves an enquiry, and a cluster of enquiries on an otherwise empty report reads as financial distress. Apply for one account, let it settle for a few months, then consider the next.

4. Monitor your credit report and adjust where necessary

Your credit score may change every month - depending on the actions you take, and how regularly your chosen lenders report to the credit bureaus. This means that you should view your credit score often to make sure it’s on track.

If you’re dissatisfied with your score, then there are measures you can take to start improving it in the months to come:

• Enquiries: Do not apply for credit from numerous providers over a short period of time. Several applications in a short period can suggest you’re struggling for credit, and your score may decrease.

• Credit utilisation: Try to reduce your credit utilisation to 30% and under. You can do this by paying a lump sum towards your credit, or by diligently paying slightly more than necessary each month.

• Payment history: This is by far the most important factor on your credit report. Make sure that you timeously pay your accounts so you don't default.

5. Be patient

It takes time for your credit score to reflect the positive actions you have taken to improve it. If you don’t see any immediate updates, don’t let it get you down.

Instead, you should keep working on it and try to give the credit bureaus even more reasons to raise your score. By doing this, you give your score a better chance of improving over time.

If you would like to find out more about growing your credit score, sign up with ClearScore and start our free, self-paced coaching plan on building your credit score.

Building your credit score from scratch: FAQs

What counts as a good, average and lower credit score in South Africa?

Most South African bureaus score between roughly 0 and 750, though the exact scale varies by bureau. As a general guide, scores in the low 600s and below are treated as poor to average, the mid-600s as fair, and scores above roughly 680 to 700 as good to excellent. Lenders use these bands to set your interest rate and credit limit, not just to approve or decline you. For more detail, see what is a good/bad credit score.

Is 620 a lower credit score?

On the Experian scale ClearScore shows, 620 falls in "On good ground" (616-633) - around the average range, but below the level that tends to attract the most competitive interest rates. Entry-level credit may be available, though approval always depends on the lender's own affordability checks. It is a very recoverable position: consistent on-time payments and lower utilisation may help over time, though any change - and how long it takes - varies by bureau, reporting timing and your wider credit file.

Why do UK and US score numbers not translate to South African scores?

Because the scales are different. A 550 in the UK, a 700 on a US FICO scale and a 700 at a South African bureau describe completely different levels of risk. Advice written for those markets can also mislead - American credit-building tactics such as authorised-user status on a family member's card do not work the same way here. Always judge your number against the band your own bureau publishes.

Can errors on my credit report be reversed, and how do I dispute one?

Yes. Under the National Credit Act you have the right to challenge any information on your credit report that you believe is inaccurate, and the bureau must investigate it free of charge. Contact the bureau holding the incorrect listing, state clearly what is wrong, and supply supporting evidence such as a payment confirmation or settlement letter. Correcting a wrongly listed default or a payment marked late in error is one of the few changes that can lift a score quickly.

How long does a bureau have to investigate a disputed listing?

The bureau must investigate promptly - generally within 20 business days - and the disputed information is flagged while the investigation runs. If the listing cannot be verified as accurate, it must be removed or corrected. If you are unhappy with the outcome, you can escalate the matter to the National Credit Regulator or the Credit Ombud.

Why do my scores differ between TransUnion, Experian, Compuscan and XDS?

Each bureau holds its own data and uses its own scoring model. Not every lender reports to every bureau, and reporting dates differ, so one bureau may already reflect last month's payment while another has not received it. Differences of a few dozen points are normal. What matters is that all of them are trending upwards.

Does checking my own credit score lower it?

No. Checking your own score is a soft enquiry and has no effect on it. Only applications for credit create the hard enquiries that lenders can see. You can check your score on ClearScore as often as you like, for free.

I have no credit history - am I unscoreable?

If nothing has ever been reported about you, bureaus have no data to score, so you may show as unscoreable or thin file. To a lender this is not the same as a bad score, but it is close to it in practice: with no evidence either way, most will decline or offer only a very small limit. Opening one account that reports monthly is what resolves it.

Do prepaid phones, debit orders, rent or a salary account build my score?

Generally not. Prepaid airtime involves no credit agreement, and rent, salary deposits and everyday debit orders are not routinely reported to the bureaus. Municipal and utility accounts do not build your score either - but your provider can report you if you fall behind, so the risk is one-directional. Only credit agreements in your own name build a positive record.

Can I build a score without taking on debt?

Largely, yes. An insurance policy paid by debit order and a cellphone contract in your name both report positive behaviour without leaving you with a balance to repay. If you do add a store card or credit card, treat it as a reporting tool: put one small recurring purchase on it, pay it in full every month, and you build history without ever paying interest.

The biggest killers of a new credit score (and how to avoid them)

The single biggest killer of a credit score is a missed payment - and when your file is new, it does disproportionate damage. With only a handful of accounts on record, one negative mark makes up a far larger share of your history than it would on an established report. Here is what undoes a new score fastest, in rough order of severity.

• Missed and late payments. Payment history is the heaviest factor in every scoring model. On a thin file with three months of data, one missed instalment can wipe out everything you have built. Set debit orders for the day after payday and keep a small buffer in the account so a returned debit never happens.

• Defaults, judgments and adverse listings. These are the most serious marks on a South African credit report and they persist for years - adverse classifications and defaults typically remain for one to two years, and an unpaid judgment can stay for up to five years. Under the National Credit Act regulations, once you settle a judgment the bureau must remove it within seven days of receiving proof of payment, and a rescinded judgment must also be removed. Even after settlement, the record of the event remains visible for its prescribed period.

• High credit utilisation. Aim to use under 30% of your available limit. This bites hardest on new accounts, because a starter store card with a R1 000 limit is maxed by a single grocery shop. Paying the balance down before the statement date, not just before the due date, is what shows a low utilisation figure to the bureaus.

• Application clustering. Several credit applications within a few weeks leave a run of enquiries that reads as desperation. Space applications out by at least three to six months while your file is young.

• Closing your oldest account. Length of credit history matters, and your oldest account is usually your most valuable one. Closing it shortens your average account age and removes the longest track record you have. Keep it open and active with a small recurring payment instead.

• Going dormant. Having no active credit at all is not neutral - it is invisible. If your only accounts fall away and nothing is reported for months, you can drift back towards being unscoreable. One small, well-managed account is better than none.

• Letting someone else use your account. If a contract is in your name, the payment record is yours regardless of who agreed to pay. Never take out a phone contract, store account or loan on someone else's behalf unless you control the payments yourself and can cover them if they stop.

Quick self-check: five things to confirm on your report this month

• Every account listed is genuinely yours, and there are no accounts you do not recognise.

• No payment is showing as late or missed when you know it was paid.

• Your balances and limits are recorded correctly, and your utilisation sits under 30%.

• There are no defaults, judgments or adverse listings you were never notified about.

• Your personal details - ID number, address, employer - are current, so listings are not being merged with someone else's file.

How long does it take to build a credit score from scratch?

In most cases you will have a usable credit score three to six months after your first credit account starts reporting, and a meaningfully improved one after 12 months of on-time payments. Getting into a good band from a standing start typically takes between one and two years. Knowing the milestones makes the wait far easier to sit through.

Month 0-3: your first account starts reporting

When you open a cellphone contract, insurance policy or store account, the provider only submits your payment behaviour to the credit bureaus after the first billing cycles have passed. During this window you may still show as a "thin file" - a report with too little data to calculate a reliable score. Lenders may describe you as unscoreable. This is not a bad score; it simply means there is nothing to score yet.

Month 3-6: your first score appears

Once two or three months of payment data are on file, the bureaus can generate a score. Expect a modest starting band rather than an impressive number - a short, clean history is genuinely low-risk information, but it is thin information, and scoring models reward depth. A first score in the poor-to-average range is completely normal and is not a reflection of anything you have done wrong.

Month 6-12: the steepest part of the curve

This is where progress is fastest. Every additional month of on-time payment adds proportionally more to a short history than it would to a ten-year one, so consistent behaviour between months six and twelve usually produces the largest single jump you will ever see. Keeping utilisation below 30% and adding a second reporting account during this window compounds the effect.

Year 1-2: reaching a good band

Moving from a low starting point to a good score - the kind of shift people describe as going from 500 to 700 - realistically takes 12 to 24 months of uninterrupted, on-time payments across two or more accounts. Progress then flattens. Once your payment record is clean and your utilisation is low, the remaining gains come mostly from account age, which only time can supply.

Can you raise a score in 30 days?

Partly. A handful of things genuinely can move within one reporting cycle: paying down a balance to cut your credit utilisation, having an incorrect listing corrected by the bureau, or settling a default so it is marked as paid. What cannot change in 30 days is the depth of your payment history or the age of your accounts, and those carry the most weight. So no, you cannot build a 700 score in a month from nothing - but you can absolutely make a real, visible improvement in one month if the levers above apply to you.

Why timelines differ between bureaus

South Africa has several credit bureaus - including TransUnion, Experian, Compuscan and XDS - and lenders do not all submit data to all of them on the same date. A payment made on the 1st might reflect at one bureau within days and at another only the following month. If your score has not moved yet, check when your provider last reported before assuming nothing has happened.

Be wary of "credit repair in 30 days"

Anyone promising to erase accurate negative information or guarantee a specific score by a specific date is selling something they cannot deliver. Accurate data stays on your report for its prescribed period, and under the National Credit Act you are entitled to dispute inaccurate listings with the bureau yourself, free of charge. Paying a third party for a result you can achieve at no cost - or for a result nobody can lawfully achieve - is money lost.