Open my info

my finds

remove bookmarks
    You don't have any bookmarks saved. Click the star icon on a panel to add it to your bookmarks. Your bookmark has been saved. Bookmark removed.

    bank better, live better

    here’s how to get your credit record into shape

    Having credit is an important part of a good financial plan as it forms the basis of your credit record. Here's why having a credit record is important and tips to build a solid one.

    here’s how to get your credit record into shape

    Here’s the thing, credit providers want to see how reliable you are at managing credit. They do this by checking if you repay your debt and what your history of financial contracts look like, all that is set out on your credit record. So if buying that first car or home requires credit, you’ll need a credit record to prove you can manage your money.

    With a record that shows you manage debt well, you are more likely to have a larger loan application approved and with lower interest rates. So, the earlier you establish a sound credit record, the better.

    Easy ways to build it

    Apply for credit: A Capitec credit card is a good start – you are eligible as long as you are over 18, can offer a proof of address and earn a minimum of R3 000 from a regular source. The bank will give you a credit limit that you can afford to repay based on your other expenses. If you provide the correct paperwork, it is issued immediately.

    Open a retail account: Opening an account with a reliable retailer will also help build your credit record, but only if you pay your installments on time. Cellphone accounts are another good option. 

    Utility bills: Try to get bills for water, electricity, rates, fixed landlines, etc. in your name to help build your record.

    Make it manageable: It will reflect badly on your credit record if you apply for too many credit lines at the same time, or too often. Having just a few, manageable credit lines from reliable institutions can provide creditors with a good indication of your ability to service debt. Make sure that you budget to repay all your debt each month

    Pay on time: To build a good credit rating you need to pay your debts on time. 

    Don’t max out your credit: Try not to use the maximum amount of credit available to you. Rather keep your credit balance to about 25% to 50% of the overall limit and repay it on time. This shows that you manage debt sensibly.

    Consolidate debt: If you already reached your spending limit and have debt, consider applying for a Capitec personal loan. You can then repay various credit lines through a single and manageable loan repayment. Capitec offers unsecured loans with affordable interest rates.

    Savings account: Putting money in a savings account each month will show creditors that you have financial discipline and think ahead. The money will also gain interest. It’s possible to have credit and save at the same time, and it helps your credit record. Check out Capitec’s Global One savings options.

    Monitor your credit rating: You can check your credit rating on our app for free.

    Was this article helpful?

    Capitec Bank Credit Card Nets You Up R250 000 In Credit

    live better with our credit card

    Your Capitec credit card gives you access to international travel insurance to cover any unexpected medical expenses while you’re travelling abroad. You may also opt in for comprehensive top-up cover at your own cost if additional cover is required.

    Read now

    #rethinkcredit this black friday

    Excited about Black Friday? Deciding if your purchase would benefit you in the long run should be the first question you ask yourself before you buy.

    Read now
    Getting Credit For The Right Reasons

    getting credit for the right reasons

    Capetonian Mannee Govender used credit from Capitec to save on his water bill and expand his ready-meal business.

    Read now
    Credit Cards Or Retail Accounts, Which Is Better?

    credit cards or retail accounts, which is better?

    Credit cards and retail accounts make it possible for us to shop with ease and pay in instalments. But which is better?

    Read now