Learning Credit Lessons the Easy Way

When you’re just starting out, it’s easy to fall into bad credit habits, especially when nobody teaches you how it all works. The good news? These mistakes are easy to avoid if you know what to look out for. Let’s break down the common credit mistakes young South Africans make with credit, and how you can steer clear of them.

Credit Mistakes and How to Avoid Them

Credit Mistake 1: Missing Payments or Paying Late

Even one missed payment can hurt your score. Whether it’s a store account or phone bill, always try to pay on time, even if it’s just the minimum.

Avoid it: Set up reminders, debit orders, or calendar alerts to stay ahead.

Credit Mistake 2: Using Too Much of Your Credit Limit

Maxing out your available credit looks risky to lenders, even if you’re paying it off later.

Avoid it: Try to keep your usage below 30% of your limit to stay in the green.

Credit Mistake 3: Taking On Credit Too Soon or Too Often

Opening too many accounts at once or applying for credit too frequently can lower your score.

Avoid it: Build slowly and only take on credit when it makes sense.

Credit Mistake 4: Ignoring Your Credit Profile

If you don’t check your credit report, you won’t know if there are errors or worse, signs of fraud.

Avoid it: Check your credit profile regularly (you can do it for free with Splendi).

Credit doesn’t have to be scary. By understanding how it works and avoiding these common credit mistakes, you’re already ahead of the game. These early habits will shape your future financial freedom.

Log into Splendi today to see where you stand and take control of your credit story.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Splendi does not provide personalised financial, investment, legal, or tax advice. Always consult with a qualified financial advisor for guidance tailored to your individual circumstances.