We've recently upgraded our scoring system. This article outlines what this change means and looks at how it could impact your credit profile. We'll also look at some of the questions users are asking. But before we get started, find out how we determine your credit score in the first place.

Your new credit score is here

ClearScore has been updated to the new scoring system, which means that your new credit score is live.

See my new score

Understanding the two kinds of credit scores

Your credit score, a three-digit number, indicates your credit reliability. It allows lenders to understand your credit behaviour before they approve any credit applications you make.

If you have a high credit score, you're seen as a reliable borrower and are more likely to qualify for credit offers with lower interest rates.

There are two kinds of credit scores:

• Credit bureau credit scores: As the name suggests, these are calculated by the credit bureaus. Each has a scoring system that gives you a high-level overview of your credit profile. For example, Experian may have given you a credit score of 680 out of 705 because lenders informed them that you were a responsible borrower. As you make regular repayments, this could climb to 685 and then 690.

• Custom credit scores: These are determined by lenders. They look at information from their preferred credit bureau and additional information from your accounts with them. For example, if you apply for vehicle finance through the same lender that you have a home loan, they will also consider how reliable you've been at paying off your home loan before approving your new credit application.

The ClearScore platform lets you see your credit bureau credit score from Experian. It's quick and easy, so sign up or log in today.

Your new credit score on ClearScore

Old Credit Score (Out of 705) vs New Credit Score (Out of 740): What Changed

When Experian South Africa introduced its Sigma scoring model, the maximum credit score shifted from 705 to 740 and the risk bands were recalibrated. The table below maps the old system to the new one so you can see exactly how the new credit score changes affect your position.

Because Sigma recalculates risk using a newer statistical model, your new number is not a simple rescale of your old score. Some users will see their score rise, while others may notice a slight dip - both outcomes are normal and reflect the improved accuracy of the data, not a change in your actual creditworthiness. Log in to ClearScore to view your updated score and band.

We get our data from Experian. Experian's new scoring system is called Sigma, and they have shared their new data with us. The new data will give you a more accurate understanding of your credit behaviour from a credit bureau and lender perspective.

Instead of having a credit score of 705, you now have a credit score out of 740. This means that the brackets, which define your handling of credit, have also changed. Have a look at the below categories that apply to your new credit score:

Besides having new positive values, some borrowers may also have negative credit scores. But don't be fooled by the name - this is merely a 'status', helping you better understand where you're at. Your actual credit score can't go below '0'.

There are six negative scores, and they indicate the following:

At ClearScore, you will have access to your new credit score from January 2023. Log in to your account to get acquainted with your new credit score.

Answers to your burning questions

Have a look at the below questions and answers to learn more about what your new credit score means for you:

1. Why has the scoring system changed?

Since lenders consider custom credit scores, you need to know how you rank according to their expectations. The new scoring system offers more details about your credit profile. It allows lenders to get an understanding of your credit behaviour before they approve an application for credit.

2. Can I keep my credit score on the old credit score system?

Unfortunately, you can't keep your old credit score. Every credit bureau offers its own scoring system, so you won't be able to find your old credit score at a different credit bureau either. Get to know your new credit score by logging in here.

3. Will my new credit score affect my ability to get credit?

Your new credit score won't affect your ability to get credit from a lender. The new system is more aligned with how they see your financial situation. This means that it will give you more confidence when applying for credit.

4. Will it take longer for my new credit score to improve?

Even though the new credit score is out of 740 rather than 705, it shouldn't take you any longer to improve your credit score. It may improve faster now that the data's more accurate.

5. My credit score has gone down - why?

What Is a Good Credit Score in South Africa Under the New System?

With the move from the old 705 scale to Experian's Sigma system scored out of 740, many South Africans are unsure where they stand. Below we answer the most common questions about what counts as a good credit score under the new credit score changes.

Is 620 a good credit score on the new Sigma scale?

A credit score of 620 falls within the "On good ground" band (616-633) on the new ClearScore scale. This is an average score - it means you're managing credit reasonably well, but there is room for improvement. Most lenders will consider applications from borrowers in this range, though you may not qualify for the most competitive interest rates. If your score is sitting at 620, focus on consistent, on-time repayments and keeping your credit utilisation low to push into the "Looking bright" band (634-657).

What credit score do most South African lenders look for?

There is no single magic number, because each lender applies its own custom scorecard. However, as a general guide, a score of 634 or above on the new 740 scale places you in the "Looking bright" or "Soaring high" bands - and that is where most mainstream lenders feel comfortable approving credit at favourable rates. Scores below 600 (the "Let's start climbing" band) will make it significantly harder to secure unsecured credit, though some lenders specialise in serving this segment with higher interest rates to offset risk.

How does my old score out of 705 translate to the new 740 scale?

There is no exact one-to-one conversion, because the underlying Sigma model recalculates risk from scratch rather than simply rescaling the old number. That said, the broad intent is similar: if you were in Experian's top band on the old system, you are likely to land in the "Soaring high" band (658-740) on the new one. Some users will see a slightly higher number, while others may notice a small dip - this reflects the improved accuracy of the new model, not a real change in your creditworthiness. Log in to ClearScore to see exactly where you sit under the new scoring system.

What score do I need to qualify for a home loan, vehicle finance, or credit card in SA?

Requirements vary by product and lender, but here are rough benchmarks on the new 740 scale:

• Home loan: Most banks prefer a score of at least 634 ("Looking bright"). A score in the "Soaring high" range (658-740) gives you the best chance of a competitive interest rate.

• Vehicle finance: Lenders typically look for a minimum score around 616 ("On good ground"), though a higher score may help you secure better terms and lower deposits.

• Credit card: Entry-level cards may be available from around 600, but premium rewards cards usually require 634 or above.

Remember, lenders also weigh your income, existing debt, and employment stability - your credit score is just one piece of the puzzle.

The majority of ClearScore users will experience an increase in their credit scores. However, if you see a slight decline, don't stress. It's just your credit score adjusting to the new system. It may have gone down because Experian now classifies users with similar credit scores to be riskier than before.

If you find that there's a drastic change in your credit score, you should investigate the data and make sure that it's correct. If you don't recognise activity on your report, then you may be a victim of fraud. Double-check your credit report and read more in this article.

How to make your new score work for you

How to Improve Your Credit Score in South Africa

The general tips above will keep your score healthy over time, but if you need results sooner - or you want to recover from a setback - the strategies below are specifically geared toward the South African credit environment and Experian's Sigma scoring model.

What is the biggest killer of credit scores in South Africa?

Missed and late payments are, by a wide margin, the single biggest factor that drags scores down. Under the Sigma model, even one payment that is 30 days or more overdue can cause a noticeable drop, and the negative mark stays on your Experian report for up to five years under National Credit Act data-retention rules. Beyond missed payments, the next most damaging events are judgments, defaults, and being placed under debt review - all of which push your score into the negative-status codes explained earlier in this article.

Quick wins: actions that can lift your score within 30-60 days

• Pay down revolving balances: Reducing your credit-card or store-card balance to below 30% of the limit can improve your utilisation ratio within a single reporting cycle (usually 30 days).

• Set up debit orders for every credit account: Automating payments removes the risk of forgetting a due date - the fastest way to stop further missed-payment damage.

• Check your credit report for errors: Incorrect late-payment flags, accounts that don't belong to you, or outdated debt-review statuses can all suppress your score. Raise a dispute and the bureau must investigate within 20 business days.

• Avoid new credit applications: Each hard enquiry shaves a few points off your score. Hold off on applications for 60 days while your other improvements take effect.

Common mistakes South Africans make that tank their scores

• Opening multiple store accounts during sales events: Retailers make it easy to sign up for store cards at the till, but each application triggers a credit enquiry and adds a new account - both of which can lower your score.

• Ignoring small debts: An unpaid R200 cellphone bill that goes to collections does the same damage as a missed R10,000 loan payment. The Sigma model does not weigh the rand amount - it weighs the behaviour.

• Closing old accounts after settling them: The age of your credit history matters. Keeping a long-standing account open (even if you rarely use it) supports your score.

How long does it realistically take to reach a "Soaring High" score?

If you are starting from the "On good ground" band (616-633), consistent on-time payments and low utilisation can move you into "Soaring high" (658-740) within roughly 12 to 18 months. Starting from "Let's start climbing" (below 600), expect a longer journey of two to three years - though quick wins like correcting report errors or paying off a default can accelerate the process. There is no shortcut to a 700+ score in 30 days, but every positive action you take is recorded and begins compounding in your favour immediately. Sign up or log in to ClearScore to track your progress for free.

Do Popular Credit Score 'Hacks' Work in South Africa?

Social media is full of credit score tricks that promise dramatic results overnight. Most of them originate in the United States, where the credit system works very differently. Here is how the most popular strategies stack up against the reality of South African credit bureaus and the Experian Sigma model.

What is the 15/3 credit card payment rule and does it apply in SA?

The 15/3 rule suggests making two payments on your credit card each month - one 15 days before the statement date and another three days before. The idea is that your reported balance will be lower, which improves your utilisation ratio. In South Africa, credit-card issuers typically report your balance to Experian once per month on your statement date. Making an extra payment before that date can reduce the balance that gets reported, so the underlying principle has some merit. However, it is not a guaranteed score boost - Sigma weighs many factors beyond a single month's utilisation. A simpler and equally effective approach is to keep your spending below 30% of your limit at all times and pay your full balance by the due date.

What is the 609 loophole - and is it relevant to South African credit bureaus?

The so-called 609 loophole refers to Section 609 of the US Fair Credit Reporting Act, which gives American consumers the right to dispute unverifiable information on their credit reports. South Africa has its own legislation - the National Credit Act (NCA) - which provides similar (and in some respects stronger) consumer protections. You do not need to reference a US law to challenge incorrect information on your Experian report. Simply raise a dispute through ClearScore or directly with Experian SA, and the bureau is legally obligated to investigate within 20 business days. If the information cannot be verified, it must be removed.

Are credit repair companies in South Africa worth it?

Be cautious. While there are legitimate debt counsellors registered with the National Credit Regulator (NCR), many so-called credit repair firms charge large upfront fees for services you can do yourself for free - such as checking your credit report for errors and raising disputes. Before paying anyone, get your free report on ClearScore and review it for inaccuracies. If you are over-indebted, a registered debt counsellor can help restructure your repayments under the formal debt-review process, but no company can legally remove accurate negative information from your credit record.

What actually moves the needle on your Experian Sigma score?

The factors that matter most have not changed with the new model - they have simply become more precisely measured. In order of impact:

• Payment history: Paying every account on time, every month, remains the single most powerful driver of a healthy score.

• Credit utilisation: Keeping balances well below your available limits signals responsible borrowing.

• Length of credit history: Older accounts in good standing strengthen your profile.

• Credit mix: A combination of revolving credit (cards) and instalment credit (loans) demonstrates versatility.

• Recent enquiries: Fewer hard enquiries over the past 12 months is better.

Skip the viral hacks and focus on these fundamentals - they are the only reliable path to a "Soaring high" score on ClearScore.

Regardless of which credit score or bureau you work through, there are actions you can take to build your credit reputation. Here are some general tips to keep your score high:

• Improve your payment history: Every time you pay a lender on time, this will be noted and relayed to the credit bureaus. Your payment history has the biggest impact on your credit score, so make sure you abide by your credit agreements at all times.

• Keep credit utilisation below 30%: Your credit utilisation, which is a percentage of your overall credit limit, should be kept under 30%. For example, if you have a credit limit of R1,000, you should not spend more than R300 on credit.

• Diversify your credit accounts: Lenders want to see that you can manage both long- and short-term debt. If it lines up with your other financial goals, try to have different credit accounts, such as a credit card and a loan.

• Keep your accounts open: If you settle one of your credit accounts, don't close it unnecessarily. The age of your credit accounts adds weight to your credit score because it shows that you can maintain a credit account for long periods.

• Reduce your credit enquiries: Every time you apply for credit, your chosen lender will request your credit report from one of the bureaus - this is known as a credit enquiry. If you have too many of these in a short space of time, your credit score will take a knock.

The best way to ensure your credit score performs well is to regularly view your credit report. This allows you to see what's happening on your report and take action to keep your credit score in order. Sign up or log in to ClearScore to get your full report - it's free, forever.