What is a Good Credit Score in South Africa?

What is a Good Credit Score in South Africa?

A credit score is a number indicates how likely you are to repay anything you borrow, based on your past history of using credit and managing finances. A higher credit score could mean you’re more likely to be accepted when you apply for credit, although it’s not a guarantee.

Each agency has its own scoring system, so your credit score may vary slightly depending on which one you choose. However, you’ll probably find that you fall into the same category across all of them. Your credit report is a detailed report based on your credit history. Again, the information contained in this credit report will differ slightly based on the credit bureau you request it from.

Credit scores are actively calculated based on a couple of important factors. Here are a few:

  • Credit history
  • Payment history
  • Outstanding debt
  • Credit utilisation (or usage)

If you apply to borrow money, lenders will look at your credit score before deciding whether to accept your application. It may also help them decide how much to offer you.

What is a Good Credit Score ?

The following is a rough guide to the Delphi system (used by Experian).

650+: Excellent credit. These individuals will easily obtain credit and receive very low interest rates.

600 – 650: Very good credit. These borrowers can get the best loan programs and offers at a good rate.

550 – 600: Good credit. Individuals with this score will receive good deals at an acceptable rate.

490- 550: Sub-prime. These people may struggle to get a loan and their interest rates will be higher.

490 and below: Poor credit. Individuals in this category may not qualify for loans and should focus on improving their credit score.

If you have such a credit score (650 and higher) that’s great. If you don’t and you want to qualify for the best loan terms possible, you’ll have to improve your credit score.

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