Check out strategies to raise your credit score
In South Africa, the use of credit is a central part of the financial life of millions of workers.
The credit score is one of the most important factors in the relationship South Africans have with banks, insurers, and finance companies.
In this text, we’ll explore smart credit card strategies to help South African workers improve their score.
1. Understand how the credit score works in South Africa
The South African credit scoring system is managed by agencies such as Experian, TransUnion, Compuscan, and XDS.
The score usually ranges between 0 and 999. The higher it is, the better your financial reputation.
The main factors that affect the score include:
- Payment history: whether you pay your bills on time. This is the factor that carries the most weight for many agencies.
- Debt amount: how much you owe compared to your credit limit. The goal is to keep this ratio healthy.
- Length of credit history: how long you’ve been using credit.
- Types of credit used: Relying on only one type of credit can limit your score.
- New credit applications: Too many credit inquiries in a short time lower your score.
A credit card, if used wisely, can be a powerful ally in improving each of these points.
2. Always pay on time
Data from the National Credit Regulator (NCR) shows that more than 40% of credit consumers are behind on payments.
Even a small delay can remain on your report for years, harming your reputation and making it harder to raise your credit score.
That’s why rule number one is: never miss a due date. Set up automatic debits or phone reminders to make sure the bill is paid on time.
3. Avoid maxing out your card
Another crucial factor is the credit utilization ratio. If your limit is 10,000 rand and you constantly spend 9,500 rand, banks assume you depend too much on credit.
Experts recommend keeping utilization below 30% of the available limit, showing that you can live comfortably without relying on credit.
4. Use your credit card strategically
A credit card can be used for essential expenses, but it must be controlled.
A smart strategy is to reserve the card for certain types of spending, such as fuel or groceries, and always pay the full balance at the end of the month.
This creates a positive and predictable track record, making it easier to manage finances and helping build a stronger score.
5. Don’t pile up unnecessary cards.
Having multiple cards may seem like an advantage, but it can hurt your score.
Every time you apply for a new card, the financial institution performs a hard inquiry, which temporarily lowers your score.
In addition, multiple cards mean more chances of missing a payment and more complexity to manage. Ideally, keep one or two main cards and use them with discipline.
6. Negotiate rates and limits with the bank.
In South Africa, major banks such as Standard Bank, Absa, Nedbank, and First National Bank offer different types of cards.
If you already have a positive history, you can negotiate better conditions, such as lower interest rates, higher limits, or more rewarding benefits.
Increasing your limit, for example, can lower your utilization ratio, as long as you don’t increase your spending.
7. Monitor your credit report regularly
Many workers don’t know this, but every South African consumer is entitled to one free credit report per year from each of the main agencies.
Checking this report is essential to identify errors, incorrect charges, or old accounts that should have been removed.
8. Use rewards with caution
Credit cards in South Africa offer popular loyalty programs like eBucks (FNB) or UCount Rewards (Standard Bank). They can save money on groceries, fuel, and travel.
But be careful: never spend more just to earn points. Use rewards as a bonus, not as an excuse to take on more debt.
9. Building credit takes time
A common mistake is expecting immediate results. Improving your credit score is a long-term process.
Consistent behaviors — paying on time, keeping utilization low, and avoiding unnecessary new credit applications — are rewarded over months and years.
