When it comes to credit scores, even well-meaning advice can amplify misconceptions. Let’s clear the air around five less-discussed myths that still mislead many South Africans today, and offer you clarity and smart guidance.
Myth 1: “Your credit score is the same across all credit bureaus”
Why many believe it: Most consumers expect a single “credit score” to be universally applied, assuming that Experian, TransUnion, and others use the same data and formula. It's easier to think of one score than several.
The truth: In South Africa, each bureau applies its own scoring model and may draw on slightly different data. So it’s common, and expected, to see variations in your score across TransUnion, Experian, XDS, and RCS (check what RCS says about your credit score here). These discrepancies reflect different scoring weightings and data sets, not mistakes. Therefore, it's wise to check reports from more than one bureau if you're preparing to apply for a loan.
Myth 2: “Clearing old debt removes negative entries from your credit report immediately.”
Why many believe it: People often associate ‘payment’ with clearance - especially since paying off a debt is a responsible act deserving of reward.
The truth: Even after a debt is repaid or settled, negative history like late payments or defaults generally remain on record for up to two years. While paying resolves your liability, it doesn't instantly erase the history. That said, a “settled” or “paid” status does look significantly better than an unpaid, ongoing default. It can also be helpful to check your credit score report if you’ve recently made an effort to pay off an outstanding debt, just to be certain it’s reflecting.
Myth 3: “Paying off a credit card just before the statement date is enough to build credit.”
Why many believe it: Some believe that quickly paying a card after use demonstrates responsibility and is enough to show a positive payment record without having an actual statement show it.
The truth: Credit bureaus need both usage and each billing cycle's payment to be reported. Paying instantly upon purchase might not get captured as “on-time” by the bureaus: they record activity as per statement dates. Your best plan? Let the cycle close, then pay the full statement amount - i.e., through proper monthly billing - for positive, reported history.
Myth 4: “Closing a credit account always hurts your credit score.”
Why many believe it: People worry that closing a card or loan account removes the benefit of long-term history or reduces available credit, possibly hurting their score.
The truth: Closed accounts - especially in good standing - still count towards your credit history. The length of your history and past on-time payments remain visible, often for years. So closing an old card doesn’t instantly erase its positive impact. However, if that reduces your available credit significantly, your utilisation ratio might rise and lower your score—so tread carefully.
Myth 5: “Maturity (age) alone guarantees a higher credit score”
Why many believe it: People assume that the older they are, the longer they've had credit, leading to a better score by default.
The truth: While a longer credit history can help, it's just one of many factors. Younger people can outperform older ones by maintaining low utilisation, diverse credit types and consistently paying on time. Age alone doesn’t grant a better score—it’s responsible usage over time that does.
Understanding these misconceptions empowers you to make smarter decisions:
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Check multiple reports to get a full picture of your credit health, especially before applying for big loans.
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Settle debts - but wait for positive reporting: a “paid” label is still better than an unpaid default.
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Build credit via proper cycles, not just quick payments.
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Be cautious when closing accounts - don’t sacrifice a long history for convenience.
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Focus on responsible credit use, not age, to steadily improve your rating.
How to Use These Insights
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Access multiple bureau reports—TransUnion, Experian, RCS—and compare.
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When settling debt, monitor your credit history afterward to ensure status updates appear correctly.
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Use credit cards smartly: allow the billing cycle to complete, then pay in full.
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Avoid closing every old account, especially if it was well managed.
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Focus on on-time payments and low balances, regardless of how long you’ve had credit.
By debunking these myths, you’re not just learning facts - you’re building financial empowerment. Understanding how credit scoring really works lets you shape a better financial future, one smart decision at a time.
Get an overview of your current score for free with RCS, or if you’re in the process of building your credit, consider a product like the RCS Store Card which gives you access to over 30 000 stores around South Africa, spreading your purchases over affordable monthly instalments.
