Basani talks about our youth-focused credit card and how to approach your credit journey.
South Africa, June 2025: The journey from varsity to the “real world” is exhilarating, filled with new opportunities and the promise of independence. Yet, for many young South Africans, this transition also brings a wave of financial uncertainty. A 2024 1Life generational wealth youth survey revealed that 50% of South African youth do not know how to build a financially stable future. Basani Maluleke, Retail Bank Executive at Capitec, says a healthy credit score is the cornerstone of a stable financial future, and that Youth Month is the perfect time for young South Africans to take control of their financial destinies.
“Your credit score is more than just a number; it's your financial passport. A good credit score can be the key to renting your first apartment without a big deposit, accessing affordable car finance to get you to your new job, securing favourable interest rates on loans, and even influencing your ability to get certain jobs or a cellphone contract. In essence, it demonstrates your reliability and trustworthiness to lenders and service providers.”
While building a good credit score is crucial, Maluleke acknowledges the initial hurdles young people often encounter. She shares the following three steps to help young people navigate this financial journey:
1. Income and budgeting are your financial foundation
To effectively manage credit, Maluleke emphasises securing a stable income stream, whether through formal employment, a side hustle, or entrepreneurial ventures; and consistently living within the limits of that income stream. “This financial foundation will protect you from falling into the trap of overspending when you get that first big financial break.”
For this reason, Maluleke encourages young South Africans to create a realistic budget and to track their income and expenses using tools like Capitec’s Track Your Spend. “Also, aim to save consistently, even in small amounts. This buffer prevents you from relying on credit for unexpected events, which could strain your finances and negatively impact your credit score if you struggle to repay.”
2. Understand and sidestep overcommitment
While the temptation to upgrade your lifestyle immediately after that first salary might be strong, Maluleke says this is where many stumble. “Overcommitment can quickly lead to missed payments or an unhealthy reliance on debt, both of which can severely damage your credit score.”
She warns, “We often see people deciding to rent a property or get a car that is more than 40% or 50% of that monthly income. Just because you can afford something doesn’t mean you should buy it. It is also important to plan carefully for any payments required to support family members (black tax).”
3. Start small and smart with credit by building a positive history
To build a good credit score, it is important to use credit responsibly. Diving into large loans or high-limit credit cards without experience can be risky.
“There are tools designed for those new to credit. Capitec's youth-focused credit card is designed to help young people build their credit history. The credit limit starts from R600, encouraging responsible spending on small, everyday expenses, such as groceries or fuel. Users should aim to pay off the full balance on time to maintain a good credit record. This shows lenders that you’re managing credit responsibly. Additionally, always take time to understand the interest rates, fees, and repayment terms – those details can make a big difference later.”
The financial world is always evolving, and Maluleke says young South Africans’ knowledge should too. She highlights educational resources like Capitec’s MoneyUp Academy and encourages young people to review their credit reports regularly.
“Building a solid credit score takes time and discipline, however by making wise financial decisions, young South Africans can lay a strong foundation for a financially secure and empowered future.”
