Published on 15 Jul 2025
Buying your first home is a major milestone, but for many people, the process can feel overwhelming - especially when it comes to qualifying for a bond. And one of the most crucial factors in determining whether a bank will approve your bond application is your credit score.
What is a Credit Score?
A credit score is a numerical representation of your creditworthiness - essentially, how likely you are to repay money that you borrow. In South Africa, credit scores typically range from 0 to 999, with higher scores indicating lower credit risk.
Here’s a general breakdown of credit score ranges:
Your credit score is compiled by credit bureaus like TransUnion, Experian, XDS, and Compuscan, based on your financial behaviour.
Why Your Credit Score Matters to Banks
When you apply for a bond, the bank uses your credit score to assess risk. In essence, they want to know the following:
A high score gives banks confidence that you will meet your repayment obligations, and it can also help you negotiate better interest rates or even get pre-approval for a bond.
What Factors Affect Your Credit Score?
Credit scores are based on several key factors, including:
How to Check Your Credit Score
You are entitled to one free credit report per year from each of the main credit bureaus. You can access yours through:
It’s a good idea to make it a habit to check your credit report regularly to spot any errors or signs of fraud.
Tips to Improve Your Credit Score Before Applying for a Bond
Improving your credit score isn’t an overnight process, but with a few smart moves, you can put yourself in a better position to qualify for a home loan:
What Banks Look for Besides Your Credit Score
While your credit score is important, it’s only one piece of the puzzle. Here are some other criteria banks will assess when you apply for a home loan:
If you're planning to buy a home within the next 6 to 12 months, start working on your credit profile now. Improving your score and managing your debt will put you in a stronger position when it’s time to apply.
Think of your credit report as your financial CV - it tells a story. Make sure it’s one that inspires trust and confidence in lenders.
Also, consider getting pre-qualified with a bond originator like Ooba. They’ll assess your credit profile and help you find the best home loan deals across multiple banks - all without affecting your score. It will also give you a good idea of how much credit you can get which is handy when house hunting – and you’ll have made a head start on your paperwork.
Owning a home in South Africa is achievable—and understanding your credit score is the first step toward unlocking that dream.
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