What is the National Credit Act?

The National Credit Act (NCA) is a South African law designed to promote a fair and non-discriminatory marketplace for access to consumer credit and for that purpose to provide for the general regulation of consumer credit and improved standards of consumer information.

How can a Debt Counsellor help me?

A Debt Counsellor can help you restructure your debt payments if you are over-indebted, negotiating with creditors to reduce monthly installments and extend repayment terms.

Check Your Credit Score for Free

Your credit score is the key to financial freedom. Learn how to check your credit score for free, understand your credit report, and take steps to improve your rating today.

What is a Credit Score?

A credit score is a three-digit number that represents your creditworthiness. It is calculated based on your credit history, which includes your payment behavior, the amount of debt you owe, and the length of your credit history. In South Africa, credit bureaus like TransUnion, Experian, XDS, and Compuscan collect this data from credit providers (banks, retailers, etc.) to generate your report.

Lenders use this score to decide whether to approve your application for a loan, credit card, or vehicle finance, and what interest rate to charge you. A higher score indicates lower risk, often leading to better interest rates and easier approval. Conversely, a low score can result in rejected applications or higher costs of borrowing.

It is important to check your credit score regularly to ensure the information on your report is accurate. A good credit score opens doors to lower interest rates on loans, while a poor score can make it difficult to get approved for credit.

How to Check My Credit Score for Free

Under the National Credit Act (NCA), every South African consumer is entitled to one free credit report per year from each of the registered credit bureaus. You can request this directly from:

TransUnion
Experian
XDS
Compuscan

Unlimited Free Access Platforms

Several platforms offer free, unlimited access to your credit score and report summary. These services are often funded by advertising or lead generation but are excellent for regular monitoring:

ClearScore: Uses Experian data.
TransUnion (TrueCredit): Offers a free version.
Old Mutual CreditView: Powered by TransUnion.
Sanlam Credit Solutions: Powered by Experian.

Understanding Credit Score Ranges

Different bureaus use slightly different scoring models, but generally, scores range from 0 to 999. Here is a typical breakdown:

650+ (Excellent / Very Good): You are seen as very low risk. You will likely get the best interest rates and easy approval.
600 - 649 (Good): You are a low-risk borrower. You should be approved for most credit, though maybe not at the absolute lowest rates.
550 - 599 (Fair / Average): You have some risk. You might get approved, but interest rates will be higher.
0 - 549 (Poor / Very Poor): High risk. Applications are likely to be declined. You need to take steps to improve your score.

How to Improve Your Credit Score

Pay on Time: Payment history is the biggest factor. Ensure you pay every account on or before the due date. Even one missed payment can drop your score significantly.
Reduce Debt Utilization: Try to use less than 30% of your available credit limit on credit cards and overdrafts. Maxing out your cards signals financial distress.
Don't Close Old Accounts: The length of your credit history matters. Keeping older accounts open (even with zero balance) shows a longer track record of responsible behavior.
Limit New Applications: Every time you apply for credit, a "hard inquiry" is recorded. Too many inquiries in a short time can lower your score as it looks like you are desperate for credit.
Check for Errors: Regularly review your report for inaccuracies. If you find an account you didn't open or a payment marked late that was paid on time, dispute it with the bureau immediately.