The Credit Score Secret: Unlocking Your Financial Superpower

Think of your credit score as your financial reputation. Lenders use it to predict how responsible you are with money. A good score tells them you’re a safe bet, unlocking a world of benefits: lower interest rates on loans, better deals on car insurance, and easier approval for credit cards. A poor score can do the opposite, costing you thousands of Rands in extra interest over time.

While the exact calculation is complex, the core factors are simple and within your control:

Payment History: This is the most important factor. Paying your bills on time every month is the single best thing you can do for your score.

Amount of Debt Owed: Keeping your credit utilization low is key. Aim to use less than 30% of your available credit on any card.

Length of Credit History: The longer your credit accounts have been open, the better. Don’t close old, paid-off credit cards.