Make 2026 your year of good credit – expert‐backed steps to get started

With 2026 now upon us, many South Africans are thinking ahead to goals like buying a house, launching a business or simply keeping family finances on track. One factor underpins all of these ambitions: your credit score. Lenders, insurers, landlords and even employers use this three‑digit number to judge whether you’ll pay bills on time. A higher score opens doors to cheaper interest rates and better deals; a low one can slam them shut. The good news? You can start improving your score today.

Practical steps for 2026 readiness

1.    Establish or expand your credit history

If you’ve never borrowed before, building a credit trail is essential. Start with a small credit card or retail account to show you can manage credit responsibly. Keep the limit low and

repay on time so bureaus record a positive payment track record. Experian also recommends credit‑builder loans, which let you deposit fixed payments into a savings account for six to 24 months while the lender reports your on‑time behaviour.

2.    Prioritise on‑time payments

Consistency matters more than almost anything else. Late or missed payments quickly lower scores and stay on your record for years. Standard Bank advises setting up automatic debit orders and paying at least the minimum each month to avoid slip‑ups. If holiday cash comes in, use it to catch up on overdue bills or make extra payments.

3.    Tackle debt and watch your utilisation

Your credit utilisation ratio (the percentage of available credit you’ve used) is the second‑largest factor in your score. Finance365 recommends keeping this ratio below 50%; top scores often stay in the single digits. Make multiple repayments throughout the month to keep balances down and use a structured strategy like the snowball or avalanche method to pay off high‑interest debts.

a.  Debt snowball: this approach focuses on paying off your smallest debts first, quickly freeing up cash and giving you psychological momentum. After wiping out the smallest balance, you roll that payment onto the next-smallest debt, creating a “snowball” effect. Seeing balances disappear can motivate you to stay on track.

b.  Debt avalanche: here, you target debts with the highest interest rates first to reduce the cost of borrowing. Once a high-rate debt is paid off, you move to the next highest-rate debt. The avalanche method may save more money overall, but it can take longer to see progress, which is why some people find the snowball method more motivating.

4.    Address collections and errors

If you have debt in collections, talk to your creditor. Experian advises negotiating a payment plan or settlement rather than ignoring the problem, which could lead to legal action.

Reviewing your credit report also helps you spot errors and signs of identity theft, which you can dispute.

5.    Monitor your progress

Both Finance365 and Standard Bank recommend checking your credit score regularly. Free services like Finance365’s dashboard let you see updates without affecting your score, and they send alerts for any changes or suspicious activity.

Building your credit isn’t an overnight fix; it’s a commitment to responsible borrowing and disciplined spending. But as the new year resolutions are still fresh, put a good score on your goal list; remember small steps (like paying every bill on time, reducing debt, keeping your credit usage low and monitoring your profile) will compound into a stronger, healthier score. Don’t wait until you need a loan or a new home to find out your rating.

Check your credit score for free now on Finance365.co.za and set yourself up for a financially confident new year.