What Is a Credit Score and How Is It Calculated in South Africa?
A credit score is a number that summarises how reliably a consumer has managed credit, based on information held by credit bureaux. In South Africa it is calculated from factors including payment history, amounts owed, length of credit history, new credit and credit mix. Higher scores indicate lower risk to lenders.
Key Points
- A credit score summarises your credit conduct for lenders.
- Payment history is the most important factor.
- High balances and missed payments lower your score.
- You can check your score through registered credit bureaux.
What information makes up a credit score?
Credit bureaux collect information from credit providers about how accounts are conducted. Your score is a statistical summary of that information, designed to predict the likelihood that you will repay future credit responsibly.
The exact formula differs between bureaux, but the main categories of information are broadly similar.
The main factors that affect your score
Payment history: whether you pay on time. This is the single most important factor.
Amounts owed: how much of your available credit you are using. High utilisation can lower your score.
Length of credit history: older, well-managed accounts can support your score.
New credit: recent applications and enquiries can affect your score, especially several in a short period.
Credit mix: managing different types of credit responsibly can have a positive influence.
How can you improve your score?
Pay every account on time, every month. Keep balances low relative to your limits, avoid unnecessary applications, and maintain older accounts in good standing. Over time, consistent conduct is the most reliable way to improve a score.
If you are over-indebted and missing payments, addressing the underlying debt — including through debt review where appropriate — is more effective than trying to improve a score while arrears accumulate.
Frequently Asked Questions
Worried That Your Debt Has Become Unaffordable?
Debt Guidance can assess your income, essential expenses and debt commitments to determine whether debt review may be appropriate.
Reviewed by Carolina Guevara Harris
Registered Debt Counsellor · NCRDC3152
Last updated: 17 September 2025
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