Your credit score is more than just a number—it’s your passport to financial opportunities. Whether you’re dreaming of owning a home, getting a new car, or securing a better interest rate on loans, a high credit score can make those dreams a reality. But how do you improve your credit score effectively? Splendi has got you covered with these actionable steps to elevate your financial health this year.

Check Your Credit Report Regularly

First things first: know where you stand. Check your credit report regularly on Splendi for free, and take advantage of our new PDF feature for just R20. We are powered by XDS, South Africa’s leading credit bureau, ensuring you get accurate and up-to-date information. Why? Regular checks help you spot any inaccuracies or fraudulent activities early, giving you a chance to address them before they impact your score.

Pay Your Bills on Time

Your payment history makes up a significant portion of your credit score. Consistently paying bills on time shows lenders that you’re reliable. Set up automatic payments or reminders to avoid missing due dates. Why? Timely payments build your credit history positively, making you look more trustworthy to lenders and improving your chances of loan approval.

Reduce Outstanding Debt

High levels of debt can hurt your credit score. Focus on paying down existing debt, starting with high-interest credit cards. Consider consolidating your debts to make payments more manageable. Why? Lowering your debt levels not only reduces financial stress but also improves your creditworthiness in the eyes of lenders.

Avoid New Credit Applications

Each time you apply for credit, a hard inquiry is made on your report, which can temporarily lower your score. Avoid opening new credit accounts unless absolutely necessary. Why? Too many credit inquiries can signal financial distress to lenders, potentially making them wary of offering you credit.

Keep Credit Card Balances Low

A low credit utilisation ratio—your credit card balance compared to your credit limit—can boost your score. Aim to keep your utilisation below 30%. If possible, pay off the balance in full each month. Why? Low utilisation indicates that you’re managing your credit responsibly, which is a positive signal to lenders.

Diversify Your Credit Mix

Lenders like to see a variety of credit types, such as installment loans, credit cards, and retail accounts. If you only have one type of credit, consider diversifying, but do so cautiously. Why? A mix of credit types demonstrates your ability to manage different kinds of debt, which can positively impact your score.

Monitor Your Credit Score with Splendi

Monitoring your credit score regularly can help you understand how different actions affect it and keep you motivated. Splendi makes this easy: with every login, your information is updated, so you always have the latest insights into your credit health. Why? Staying informed about your credit score’s fluctuations empowers you to make better financial decisions.

Be Patient and Persistent

Improving your credit score is a marathon, not a sprint. Stay patient and persistent. Over time, these habits will build a solid credit foundation and open doors to greater financial opportunities. Why? Consistency is key; long-term positive behaviour is more impactful on your credit score than short-term fixes.

Disclaimer: Splendi does not constitute as a financial advisor. The information provided is for informational purposes only and should not be considered as professional financial advice. Always consult with a qualified financial advisor before making any financial decisions.