Most South Africans know they have a credit score - but few understand what it truly represents. Many imagine it as a single number that determines whether a lender approves or declines an application. In reality, that number is only the beginning. Your credit score is the ‘headline’ but lenders read the full story behind it. And that story is shaped by the habits you display every month.
As more South Africans try to improve their financial footing, especially in an environment filled with rising costs, understanding what lenders actually look for has never been more important. The National Credit Regulator’s recent Credit Bureau Monitor shows that only 64.29% of the country’s 28.6 million credit-active consumers are in good standing, meaning more than a third struggle with impaired records such as missed payments or defaults.
Numbers like this highlight why credit behaviour matters - and why it pays to know what sits beneath your score.
Your Credit Score Is Just the Summary
South Africa’s major credit bureaus all compile a three-digit credit score for each consumer. But lenders don’t approve credit based on this number alone. TransUnion notes that while the score provides a useful snapshot, lenders rely heavily on behavioural patterns and risk indicators to determine whether someone is likely to repay their debt on time.
So, when a lender looks at your application, they’re not only seeing what your score is - they’re seeing why it is that way.
Payment Behaviour: The Strongest Clue About Your Financial Habits
Of all the information that sits behind a credit score, payment behaviour tells the clearest story. Lenders look at whether you pay your accounts on time, how frequently payments are late, and how late they are. Even a single missed instalment can influence your score, because it suggests that repayment is inconsistent - which translates into higher risk.
South Africa’s high level of impaired credit records reflects how common late or missed payments are. More than 10 million consumers currently fall into this category, according to the NCR’s data.
This makes consistent repayment the most powerful habit you can develop to strengthen the hidden life of your score.
Why Your Credit Utilisation Matters More Than You Think
Another major factor lenders examine is how much of your available credit you use. Even if you always make your instalments on time, constantly using a high percentage of your credit limit signals financial strain. This is known as credit utilisation, and it’s one of the earliest signs lenders look for when assessing risk.
Keeping your balances lower, relative to your limit, benefits both your score and your risk profile.
Your Credit History Tells a Story About Stability
How long you’ve held credit also matters. A long, well-managed credit history helps lenders understand what type of borrower you are. It’s common for consumers to close older credit accounts to simplify their finances, but doing so can shorten your credit history and remove a positive behavioural track record.
This is why credit rebuilding takes time: lenders rely on consistent patterns, not short bursts of perfect behaviour.
Lenders Notice How Often You Apply for Credit
Your recent credit activity is another layer in the story lenders see. Applying for credit too frequently - or opening several accounts in a short period - is associated with financial distress. Every credit application creates a ‘hard enquiry’ and a cluster of enquiries signals to lenders that you may be taking on more debt than you can comfortably manage.
Monitoring your credit score can improve it - simply because you become more aware of your behaviour.
The Role of Defaults and Judgments
Defaults, arrears, and judgments can significantly impact a credit profile. These events remain visible to lenders for years and are treated as strong indicators of risk. However, they can be rehabilitated with consistent future repayment behaviour. Lenders take note of whether you are moving in the right direction.
That movement matters more than people realise.
Understanding your credit score - especially the behaviours behind it - is key to building financial health. The RCS Credit Gateway gives consumers access to your credit report, offering clarity on what to improve.
This transparency empowers you to:
-
track changes month to month,
-
understand what lenders look for,
-
identify harmful habits early, and
-
make informed decisions about your financial goals.
The Credit Score Is a Behavioural Story - Not Just a Number
Your credit score is dynamic. It changes with your actions, your habits, and your consistency. Lenders don’t just see a number - they see the pattern behind it. And the good news is that patterns can change.
