How To Start Building A Credit Score From Scratch In South Africa

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Living debt free is the ultimate goal in life, but unfortunately, when it comes to buying big ticket items like a car or a house, the vast majority of us won’t be able to afford paying for the whole thing in cash. This means that we will have to take out a loan in the form of credit at some point in our lives, and in order to qualify for a loan and a good interest rate, the credit provider will look at something known as our "Credit Score".
It would seem like the whole system is rigged, as in order to build up a credit score, you need to actually take out credit. One would think that if you buy everything in cash and avoid credit like the plaque, that you would be rewarded and seen as a responsible citizen? Nope, unfortunately not.
Building a credit record is kind of like a catch 22. You need credit to build a credit record, but you also need a credit record to be approved for credit. So in this video, I will show you exactly how someone in South Africa could go about building a good credit score from scratch as well as the pitfalls that you need to avoid in order to maintain a good credit score.
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My name is Dr. Pieter Marx de Villiers, and I'm a Veterinarian turned Financial Advisor from South Africa who aims to retire by the age of 35. Follow me in my journey towards Financial Freedom in (hopefully) just 10 years! :)
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[@MoneyMarx]

Thanks to ExpressVPN for sponsoring today's video. Go to strms.net/expressvpn_moneymarx to grab your special offer where you can get your first 3 months for absolutely free!

[@mthokozisimyende787]

Im still a Varsity student but I wanna start building my credit score asap, this video is what I needed

[@MoneyMarx]

That's great TK! Starting early on is very important and will help you save thousands of rands later on!

[@tshepisosponza7214]

@@MoneyMarx i just want 250k from capitec before december i couldn't get it because of credit score im also a varsity student

[@elnino530]

Just a note, when you pay off an RCS (at least the GAME one) card all at once every month, or even in chunks bigger than the debit order, your credit score doesn't build (or at least mine didn't for 6 months, after I stopped paying back more than I had to, my credit started going up fairly quickly)

[@Ptmjeager]

Please be more clear , I say this respectfully, you say when you paid back in bigger chunks than the original debit order , your CS didn’t go up but when you pay the amount it didn’t as well , but when you paid an amount under that that “owing” amount are you saying your CS went up?

[@Ptmjeager]

What do you mean all at once if wouldn’t go up but when you paid just under the amount owed the CS went up?

[@elnino530]

@@Ptmjeager Basically the debit order had to happen, when you pay early no debit order goes down (since you already paid for that month), but for some reason that caused my credit score to not grow By all at once, I mean everything, so let's say I used R2000 of the cards value, then before my debit order I paid the full R2000 back I also noticed the credit amount for the card also never got more when I paid back early, only after letting the debit orders go down for a couple months did the credit amount I qualified for go up

[@gomolemomokgatle7161]

As a 22 yo I'm really enjoying this content!!! Adulting is nerve wrecking, but I love how I'm learning more and more each day

[@roan6357]

Please do a video on the 2 pot system please

[@blackrosepages6886]

I just checked my credit score on clear score, thank you for the information. Didn't know where I could check it

[@kat.thekid_]

Im 18 and I’ve been trying to open up a credit account with shops like Edgar’s, sportscene and I also tried to get a phone contract. They all rejected me because I don’t have a credit score. Any suggestions on what I should do?

[@tshepisosponza7214]

bro😭

[@tshepisosponza7214]

I can relate

[@pepelebelo2297]

Start with rage and pay it off then you will be able to open other accounts that’s how I stared

[@Ptmjeager]

@@pepelebelo2297are you a developer I see you have dev in your name?

[@michaelbotha5431]

Hi Money Marx, absolute fan of yours! Not sure if I am overlooking it on your channel, but a great topic in high demand (especially among young professionals) is "what to do with your savings as a South African when you are planning to immigrate in the next 5 years". Thank you for your great content!

[@MoneyMarx]

Hey Michael. Thanks man, I appreciate it! I think that is an excellent topic for a video! It is sad to see so many young skilled professionals leaving the country, but everyone needs to decide for themselves where they believe they will be able to build the best future for their families.

[@talkintakos5072]

Great video dude. Started building my credit score last year and I never knew how to check it till now. Thanks a million.

[@pierrevandermerwe5635]

How did you do this? I am 2 years out of school now and working, no retail store will give me an account because I do not have a credit score? Its an endless loop where I want to start but physically can’t

[@Ptmjeager]

@@pierrevandermerwe5635I saw someone mentioned they were like you and started with Rage

[@Ptmjeager]

@@pierrevandermerwe5635then because of that they had credit history then were permitted by other stores to do that , get an account and ofc s credit card

[@imransadiq4149]

Hi. Thanks for the brilliant video. Please do a video next on what I need to do if I have a very poor credit score and want to improve it

[@sherrainehiggs7380]

Thanks Frans, been following you for a while. Enjoy yiur content very much. I monitor credit report monthly.

[@sherrainehiggs7380]

Oops...Pieter. 😂

[@modikoakoena250]

Something new and different on KZbin, thanks for sharing.. definitely following you

[@MoneymetEish]

Awesome video Pieter! I love your studio set up. Really lekker! 💯

[@sicarri0]

Awesome video, been looking into getting some more credit to help with future purchases such as a home.

[@imdee9024]

Almost 10 0000 subs! Fabulous!

[@atlegangalec21]

Could you please explain what cash back is. Cause I hear you talking about it a lot and I'm like what is that😅

[@voltrex_1327]

How are you supposed to build credit from 0 if you need credit to start building credit? I suck at math and numbers😭🤦‍♂️ my dad, mom and aunt told me open up an account at mr price or some clothing shop (i forgot the name) and just pay the amount to keep it open so if the monthly fee for the account is R100 i must pay that R100 every month. And then i start building store-credit but for some reason this is alot more confusing than it should be.

[@mokgadimmutlana7225]

we all know in south africa it is all about colour of skin,,,,right now I have never had any credit in my life but when I try to do that,,,, I am declined and that adds an enquiry on my report which decreases my score making it even more difficult

[@signiiture]

🤣🤣🤣 bro you just cracked me up

[@MAZiBAShAUN]

thanks for your help,

[@NeoM018]

Hi Pieter, which bank offers a secured credit as I called to enquire some time back and i was like talking foreign to them?

[@MoreThanRuan]

Nedbank has a whole article on their website about it and how it can help, but they don’t even offer this as a product. I’ve not checked with other banks, but I will be doing so.

[@aw5453]

Do you suggest getting a credit card an paying the extra fees evening if you have very low expenses. Example 3000 a month. Also do you know what is the cheapest credit card?

[@gladsoul]

PLEASE DO A REVIEW ON FRANC APP AS AN EMERGENCY FUND

[@lesegomasango9117]

Hey Pieter,I've received joined and been following your videos which are queit eye opening. But I have a question...I've paid up my tfg account end of July which have been in arrears and still appearing in my credit score,tried opening credit card this month to increase my credit score but I was declined. How do I dispute? TIA

[@lesegomasango9117]

Recently joined I meant

[@mohaupac1065]

Hi should I be learning accounting if i want to be an investor/entrepreneur

[@nuvi5480]

No need to get a degree, just research the fundamentals

[@Ptmjeager]

@@nuvi5480that also applies for investment management?

[@gladsoul]

PLEASE DO A REVIEW ON FRANC APP AS AN EMERGENCY FUND