THE FIVE KEY BEHAVIOURS THAT GROW YOUR SCORE
Below are 5 key behaviours that grow your score over time. Each of these as you may have noticed, are all linked to the factors Credit Bureaus use to calculate your credit score.
1. Pay Every Bill on Time – Every Time
- Why it matters: Payment history is the biggest factor in your credit score (50%).
- How to do it: Set reminders or automatic payments. Even one missed payment can drop your score significantly.
2. Keep Your Credit Usage Low
- Why it matters: Using too much of your available credit hurts your score.
- How to do it: Keep your usage below 30% of your limit. If your limit is R10 000, try not to use more than R3 000.
3. Build a Long Credit History
- Why it matters: The longer your credit history, the more confident lenders are in your habits.
- How to do it: Start early with a small, manageable account like a store card or credit card, and keep your oldest account open.
4. Mix It Up – Use Different Types of Credit
- Why it matters: Lenders like to see that you can manage different kinds of credit (credit cards, loans, or phone contracts).
- How to do it: If possible, responsibly manage at least two types of credit over time (e.g. a phone contract and a credit card.
5. New Credit – Keep applications to a minimum
- Why it matters: – Every time you apply for credit, a lender checks your credit report—this is called a hard inquiry. Too many inquiries in a short time can signal risk and lower your score temporarily.
- How to do it: Spread out your applications over time. Apply only when you truly need credit.