Many South Africans find it hard to qualify for credit simply because they’ve never had it before or they’ve made some financial mistakes in the past that damaged their credit record.
Having no access to credit can sometimes be just as limiting as having bad credit. But here’s the good news, says FNB Credit Card CEO Product Head Thabiso Tshabalala “Anyone can build a positive credit record. It just takes understanding, consistency, and a few smart choices.”
The truth is access to credit can open doors to education, mobility, and independence. However, without a credit history, getting started can often feel intimidating.
“Building a credit record isn’t about how much you earn. It’s about showing that you can manage what you have, responsibly,” says Tshabalala who’s put together a practical guide for students, young earners, and anyone else looking to build or rebuild their credit confidence.
Here’s how to start, even if you’re new to credit or have made mistakes before:
- Know what a credit record really is
Your credit record is essentially a report card for your money behaviour. It shows how well you handle debt. Lenders use it to decide whether they can trust you with credit. “Think of your credit record as your financial reputation,” says Tshabalala. “It tells banks and retailers if you pay your bills on time, how much you owe, and how responsible you are with managing what you already have.” Even if you’ve never had a credit card or loan or are trying to rebuild a damaged credit record, you can still start by using smaller, lower-risk products to build back a positive track record.
2. Start small and start smart
It’s tempting to jump straight into a store card or personal loan, but Tshabalala warns that “Credit should be a tool for responsible financial growth and the attainment of productive personal goals like education, mobility, and independence. Credit should not be a trap.” Start with an entry-level credit card, a student credit product, or a secured card linked to your savings. These offer manageable limits and help you build your history without over-committing to unsustainable debt. “At FNB we see thousands of young people successfully start with small credit limits, sometimes as little as R1000, and grow responsibly from there,” he notes.
3. Pay on time, every time
Payment history is the biggest factor in your credit score. Missing even one payment can hurt your record. “Paying on time shows reliability,” says Tshabalala. “Even paying the minimum amount consistently makes a big difference. It proves you can be trusted to honour your commitments.” Set up debit orders or scheduled transfers to stay on track. Reliability matters more than size, and consistency builds confidence.
4. Don’t max it out
Using your full limit every month signals that you might be over-reliant on credit. Try to use less than 50% of your available credit. “If your limit is R2 000, aim to spend no more than R1 000 before paying it off,” advises Tshabalala. “It shows self-control, and banks reward that.”
5. Avoid store cards as your first option
Store accounts can seem easier to get, but they often come with higher interest rates and limited flexibility. “Many young South Africans start their credit journey with store cards, only to find that they’re paying more in interest and fees than they expected,” says Tshabalala. “But a credit card, when used responsibly, can offer more control, transparency, and longer-term benefits. It’s not just about spending. It’s a tool that, when managed well, can help you build a strong credit profile and work towards achieving bigger goals like buying a home, rather than just chasing instant gratification.” He suggests exploring student-friendly bank products or digital credit options with clear terms and educational tools.
6. Build positive credit habits early
Having a credit record isn’t only about borrowing; it’s also about proving your financial discipline. “Once you’ve made a decision to take up credit to advance certain areas of your life, it’s essential to manage it responsibly,” says Tshabalala. “That means regularly checking your credit report, paying your bills in full and on time, and avoiding frequent credit applications. Healthy habits today lay the foundation for better interest rates, easier access to car finance, or even home ownership in the future.”
7. If you’ve had challenges, rebuild patiently
If you’ve missed payments in the past, don’t panic. Focus on rebuilding with smaller, low-risk products. It’s also important to bear in mind that keeping a positive bank balance in your account will help with building a solid credit record. “The credit system rewards recovery,” explains Tshabalala. “Six months of good behaviour can start to turn things around. Banks look at an individual’s improved behavioural trends, not just their mistakes.”
Building credit is not about luck, it’s about consistency.
“Credit is built on trust. Respect it, and it will unlock door of opportunities for you, from your first phone to your first home. Nurture it wisely, and you’ll build a future where your goals are within reach and your dreams are never out of bounds,” concludes Tshabalala.
SUPLLIED.
