Our guide to everything you need to know about credit searches.

The main reason you have a credit report is so that lenders can look at this information (with your permission) when they need to make a decision on whether or not to lend to you.

Lenders will use your credit report to assess the level of risk they're taking on when they lend to you. They'll look at things such as if you've paid back your debts in the past, how you've paid it back (e.g. on time or late) and how much debt you currently have. Lenders will look at your credit score too, but since this is only giving an indication of what's in your credit report, they won't use your credit score alone to make a lending decision.

It won't always be lenders that want to look at your credit report. Sometimes other types of companies may ask your permission to check your report, such as a potential employer or landlord, if they want to see how well you handle your finances. Debt collection agencies may also check your credit report if they're trying to find out more information about you.

We're going to talk about the checks that lenders and other companies carry out on your credit report and which of these might affect your credit score and report.

What is an enquiry?

What Does a Credit Check Involve? Step by Step

If you've ever wondered what actually happens during a credit check, here's a step-by-step breakdown of what the process entails from the moment you submit an application to the point where a decision lands in your inbox.

Step 1: You give the lender permission

Every credit check in South Africa requires your consent. When you fill in a credit application - whether online, in-store, or at a bank branch - you'll sign or accept a clause authorising the lender to access your credit information. Without this permission, the lender cannot legally pull your report. This requirement is governed by the National Credit Act (NCA), which protects consumers from unauthorised access to their financial data.

Step 2: The lender requests your report from a credit bureau

Once you've given consent, the lender sends a request to one or more of South Africa's registered credit bureaus, such as Experian, TransUnion, or Compuscan. The bureau matches your identity - typically using your ID number - and compiles a report summarising your credit history.

Step 3: What information the lender sees

The credit report returned to the lender includes a range of details: your open and closed credit accounts, the balances and limits on each, your payment history (including any late or missed payments), any judgments, defaults, or debt review status, and a record of previous enquiries. The lender also receives your credit score, which gives a quick snapshot of your overall creditworthiness.

Step 4: How the lender uses the information to make a decision

Lenders combine the bureau data with their own internal criteria - such as your income, employment status, and existing obligations - to decide whether to approve or decline your application. Each lender weighs these factors differently, which is why you might be approved by one institution and declined by another for the same product. The interest rate and credit limit you're offered are also influenced by what the credit check reveals.

Step 5: The enquiry is recorded on your report

After the check is completed, the enquiry is logged on your credit report. This hard enquiry is visible to any future lender who pulls your report and may remain there for up to one year. You can view all enquiries in the 'Enquiries' section of your ClearScore account, which helps you keep track of who has accessed your information and when.

Enquiries, also known as credit checks, are when someone looks at your credit report to find out about your borrowing history. In South Africa, credit checks fall into two categories - hard enquiries and soft enquiries. Only hard enquiries, which occur when you formally apply for credit, affect your credit score and report. Soft enquiries, such as checking your own report or an employer running a background screen, do not.

An enquiry is when a lender takes a full look at your credit report (and score). This type of credit check leaves a mark on your credit report, so whenever prospective lenders look at your credit report they can see you applied for credit (and whether you were accepted).

Under the National Credit Regulations, enquiry information may be displayed and used for credit scoring or assessment for up to one year. Note that a debt-collection listing (as distinct from the enquiry itself) may remain visible for longer under separate retention periods.

These are the common reasons someone may carry out an enquiry on your report:

• When you apply for a loan, a credit card or a home loan

• When you open a new utility account (including mobile phone contracts). It's very common for an enquiry to have an impact on your credit score - but as long as you keep borrowing responsibly then this impact should only be short term.

If you make several applications for credit in a short period of time, this may have an even greater impact on your credit score. This is because having several hard enquiries carried out in quick succession may appear to anyone looking at your credit report that you're desperate for credit, or that you're suddenly struggling with your current debt.

Even though this may not be the case in reality, this makes you appear to be a riskier person to lend to. Not only is this likely to impact your credit score, but it may also mean you're rejected for credit or you're only offered credit at a higher interest rate.

Frustratingly, you often won't know the exact interest rate or credit limit you'll be offered until you've had an enquiry carried out on your credit report. This isn't helpful if you're trying to avoid making multiple credit applications.

Does checking my ClearScore count as a hard enquiry?

Does Checking Your Own Credit Score Lower It?

One of the most common concerns people have is whether checking their own credit score will cause it to drop. The short answer is no - looking at your own score is completely safe and has zero effect on your credit rating.

Why self-checks (soft enquiries) don't affect your score

When you view your own credit report - whether through ClearScore or directly from a credit bureau - the lookup is classified as a soft enquiry. Soft enquiries are not visible to lenders and are never factored into your credit score calculation. This means you can check your report as often as you like without any negative consequences. In fact, regularly reviewing your report is one of the smartest things you can do, because it helps you spot errors, track your progress, and catch early signs of identity fraud.

Who else can do a soft check on your report?

Self-checks are not the only type of soft enquiry. In some cases, potential employers may run a soft check as part of a background screening process, and insurance companies may do the same when quoting you a premium. These lookups let the organisation verify basic financial information without leaving a hard enquiry footprint on your report. However, any formal credit application - such as applying for a loan, credit card, or home loan - will always trigger a hard enquiry, which is recorded on your report and can influence your score.

Common actions that actually do lower your credit score

While checking your own score is harmless, certain behaviours do have a genuine impact. Making multiple credit applications in a short space of time is one of the biggest factors that can drag your score down, because it signals financial stress to lenders. Missing or late payments carry even more weight - a single missed instalment can remain on your payment profile for up to five years under NCA data-retention rules. Running your credit card balances close to their limits (a high credit utilisation ratio) is another common culprit. Focusing on these areas will do far more for your score than worrying about self-checks.

What Does a -1 Credit Score Mean in South Africa?

A credit score of -1 can be confusing, especially when you're trying to understand where you stand financially. Below are the most common questions South Africans ask about this unusual score.

What does a -1 credit score mean?

A -1 credit score means that the credit bureau does not have enough information on file to calculate a score for you. It is not a negative rating or a penalty - it simply indicates that your credit profile is either brand new or has been inactive for a long period. Credit bureaus such as Experian need a minimum amount of recent credit activity (such as an open account or a repayment history) before they can generate a numerical score.

Why is my credit score showing as -1?

There are several reasons your credit score might display as -1. You may never have taken out any form of credit, such as a loan, credit card, or store account, so the bureau has no repayment data to work with. Alternatively, your last credit account may have been closed long enough ago that the remaining information has aged off your report. In some cases, the bureau's records may be incomplete - for example, if a lender failed to report your account details. Young adults and people who have recently moved to South Africa are particularly likely to see a -1 score because they have not yet built a local credit history.

Does a -1 credit score mean I have bad credit?

No. A -1 credit score is not the same as a low score in the 'Let's start climbing' band (0-598). It does not mean you have missed payments, defaulted on a loan, or been blacklisted. It simply means there is insufficient data available to produce a score. That said, having no score can still make it harder to get approved for credit, because lenders rely on your credit history to assess risk. Without that history, they have little basis on which to make a decision.

How long does it take for a -1 credit score to change?

Once you open a credit account - such as a small store card, a mobile phone contract, or a credit-builder loan - your activity will start being reported to the credit bureau. Most lenders report to the bureaus on a monthly cycle, so you can typically expect a numerical credit score to appear within one to three months of your first account being opened. You can monitor this progress for free through your ClearScore account, and checking your own score will never affect it.

No. When ClearScore pulls the credit report from Experian, we conduct an "invisible" search, i.e. it leaves no footprint on your credit report and does not impact your credit score. You can log into your ClearScore as many times as you like, with no impact on your credit score, ever.

Checking your search history

How to Minimise the Impact of Credit Checks on Your Score

Hard enquiries are a normal part of borrowing, but too many in a short window can drag your score down. Here are practical steps you can take to keep the impact to a minimum.

Space out your credit applications

Every hard enquiry is recorded on your report, and a cluster of applications within a few weeks can signal financial distress to lenders. Where possible, leave at least three to six months between credit applications. If you need to compare loan or home-loan interest rates, try to do so within a short, concentrated window - some scoring models group similar enquiries made within 14 to 30 days as a single event, which limits the damage.

Use pre-qualification or soft-check tools first

Many lenders and comparison platforms now offer pre-qualification checks that use a soft enquiry. These give you an indication of whether you're likely to be approved - and at what rate - without leaving a mark on your report. Taking advantage of these tools lets you narrow your shortlist before committing to a formal application.

Check your own report before applying

Before you apply for any form of credit, review your report through your ClearScore account. Look for errors, outdated information, or accounts you don't recognise. Disputing and correcting inaccuracies before a lender sees them can improve both your chances of approval and the terms you're offered, reducing the need to apply elsewhere.

Know how long enquiries stay on your report

Enquiries may remain visible on your credit report for up to one year. Understanding these timeframes helps you plan ahead - if you have a major application coming up, such as a home loan, it pays to avoid unnecessary credit applications in the months leading up to it.

Focus on the factors that matter more than enquiries

Enquiries are only one piece of the credit-score puzzle, and usually not the biggest one. Payment history, credit utilisation, and the length of your credit history all carry significantly more weight. Paying every account on time, keeping your balances well below their limits, and maintaining long-standing accounts in good standing will do far more for your score than simply avoiding credit checks. Concentrate on these fundamentals and the occasional hard enquiry will have minimal lasting effect.

Your credit report will always show when someone has checked your report.

You find this on your ClearScore account in the 'Enquiries' section of your report.

Checking over your enquiry history may be helpful if you're wanting to carefully plan any credit applications. This will help you avoid applying multiple times in a short period (which could negatively affect your credit score and report). Checking your enquiry history can also help you identify early signs of identity fraud in the event that someone is trying to take out credit in your name.