Struggling With Your Credit Score? Here’s Where to Start

Veruschka Cahay

May 27

3 min read

Updated: Jun 2

A Smart Property Guide for First-Time Buyers

If you’re planning to buy property in the future, your credit score matters more than you may think. Whether you’re purchasing your first apartment, townhouse, or family home, your credit profile plays a major role in whether a bank approves your home loan and what interest rate you receive.

The good news? Improving your credit score doesn’t happen overnight, but starting early can make a massive difference when you’re ready to apply for a bond.

What Is a Credit Score?

A credit score is a number that reflects how responsibly you manage debt and payments.

Banks and lenders use this score to assess:

Your financial reliability
Your borrowing habits
Your repayment history
The level of risk involved in lending to you

A stronger credit score generally improves your chances of:

Home loan approval
Better interest rates
Higher borrowing limits
Faster finance approval

Why Your Credit Score Matters When Buying Property

When applying for a home loan, banks look at more than just your salary.

They also evaluate:

Existing debt
Payment history
Credit utilisation
Missed or late payments
Financial behavior over time

Even a small improvement in your score can potentially save you thousands over the lifetime of a home loan.

1. Pay Your Accounts on Time

This is one of the most important factors affecting your credit score.

Late payments on:

Credit cards
Clothing accounts
Cell phone contracts
Personal loans
Vehicle finance

can negatively impact your profile.

Simple Tip:

Set up automatic payments or reminders to avoid missed due dates.

Consistency matters.

2. Avoid Maxing Out Your Credit Cards

Using too much of your available credit can signal financial pressure to lenders.

Try to keep your credit usage below 30–40% of your available limit where possible.

Example:

If your credit card limit is R10,000, avoid consistently spending close to the full amount.

Responsible usage builds trust with lenders.

3. Check Your Credit Report Regularly

Many people are surprised to find:

Incorrect information
Old debt listings
Fraudulent accounts
Paid-up accounts still showing as unpaid

Reviewing your credit report helps you identify and fix issues early.

In South Africa, consumers are entitled to free annual credit reports from registered credit bureaus.

4. Reduce Existing Debt Slowly and Consistently

You don’t need to clear every account immediately.

What matters most is:

Consistent repayments
Lowering balances over time
Demonstrating responsible financial behaviour

Focus on paying down:

High-interest debt first
Revolving credit balances
Smaller overdue accounts

6. Keep Older Accounts Open

Your credit history length can positively influence your score.

Closing older accounts immediately may reduce your credit history profile.

If an account is:

In good standing
Affordable to maintain
Managed responsibly

It may help strengthen your overall credit profile over time.

7. Avoid Missing Small Payments

Even smaller accounts can affect your score.

Missed payments on:

Store accounts
Streaming services
Mobile contracts
Subscription services

can still be reported to credit bureaus.

Good financial habits across all accounts matter.

8. Start Building Credit Early

If you’ve never used credit before, lenders may struggle to assess your financial behavior.

Responsible ways to start building credit include:

A low-limit credit card
A small retail account
A cellphone contract paid consistently

The goal is not to accumulate debt — it’s to build a reliable payment history.

How Long Does It Take to Improve a Credit Score?

Improving your credit score is usually a gradual process.

Positive financial habits maintained over several months or even years and can significantly strengthen your profile over time. The earlier you start, the better positioned you may be when applying for property finance later.

Improving your credit score early is one of the smartest financial moves future property buyers can make.

Strong credit habits today can lead to: