What credit score is needed for a loan in South Africa?

You know that feeling when you hit “apply” for a loan and wonder, “Will they say yes?”

Well, your credit score might already have the answer.

In South Africa, credit scores do most of the talking when it comes to loan applications.

But what’s considered good, average, or bad—and how does it really affect your loan approval?

Here’s everything you need to know before you apply.

 

What credit score is needed for a loan in South Africa?

In South Africa, a credit score of at least 600 is generally required to qualify for a loan. But the minimum varies from lender to lender. Plus, lenders consider income, expenses, existing debt, and loan terms to evaluate applications. Applicants with higher scores, or scores above 650 have a greater chance of approval and may get better loan terms.

Basically, the higher your score, the better your chances—and the better the loan conditions you’ll likely receive.

 

 

Good, average, and low credit scores

A credit score is a three-digit number that represents an individual’s creditworthiness. In South Africa, scores typically range from 0 to 999 with different ranges indicating varying levels of risk to lenders. While scores range from 0 – 999, they’re measured on different ranges depending on the credit bureau because different credit bureaus use different ranges. TransUnion (0 to 999), Experian (0 to 743), Compuscan (0 to 705).

We’ll go over good, average, and bad scores, adding references for the various ranges.

Now, let’s break these scores down to see where you stand.

 

What is a good credit score in South Africa?

A good credit score in South Africa typically ranges from 620 to 999. Borrowers in this range are seen as low-risk and are likely to receive favourable loan terms, such as lower interest rates and higher loan amounts.

Good credit scores:

• TransUnion: 650 to 999
• Experian: 581 to 743
• Compuscan (part of Experian): 620 to 705

 

So, if you’re at 650 or above, you should be set.

 

What is an average credit score in South Africa?

An average credit score in South Africa is between 580 and 649. Borrowers in this range can still qualify for loans but may face less favourable terms, including higher interest rates or stricter conditions.

Keep in mind that this is an average credit score, and not necessarily the average credit score in the country.

Average credit scores:

• TransUnion: 580 to 649
• Experian: 512 to 580
• Compuscan (part of Experian): 560 to 619

 

Middle-of-the-road scores, like 580 to 649, can still get you approved but might come with tougher loan terms.

 

What is a low credit score in South Africa?

A low credit score in South Africa is typically anything below 580. This indicates a higher risk to lenders, making it harder to secure loans or resulting in higher interest rates and stricter borrowing conditions.

Low credit scores:

• TransUnion: 0 to 579
• Experian: 0 to 511
• Compuscan (part of Experian): 0 to 559

 

Don’t worry if your score is low—you can work on building it up with the right strategies.

⭐ Related content:

• What is a good credit score in South Africa (+ examples)
• How to build a strong credit score (with simple checklist)

 

Frequently asked questions

How much must you earn to qualify for a loan?

To qualify for a loan in South Africa, most lenders require a regular minimum monthly income of at least R3,000 per month. However, some banks offer smaller loans over short periods to borrowers who earn as little as R1,500 per month. The loan type and the loan terms influence the minimum qualifying income amount.

Secured loans, like home loans or car financing, also take affordability into account by reviewing the applicant’s income, expenses, debt, and loan terms in relation to one another.

• For personal loans: Many lenders set a minimum income threshold of about R3,000 per month but may consider less for smaller personal loan amounts.
• For home loans: The lender calculates the monthly repayment to assess affordability. Generally, the repayment amount should not exceed 30% of the applicant’s monthly income. But other factors like debt, expenses, and loan terms also impact the earning requirements.

 

Think of it this way: Your income needs to comfortably cover your loan repayments, plus your usual expenses.

Lenders want to see balanced affordability and good credit behaviour. That’s why they look at income, expenses, etc., and credit scores.

 

 

Next question…

 

How long does it take for a loan to be approved?

Loan approval times in South Africa vary depending on the loan type. Personal loans may be approved in 2-5 business days. Home loans can take a week or longer because there are so many factors to consider. Things like the applicant’s credit score, the value of the property, and the size of the applicant’s deposit.

• For personal loans: Approval takes between 2-5 business days. 
• For home loans: The process is more extensive and often takes up to a week or more. 

 

Another thing to keep in mind is that strong applications tend to get approved faster than risky applications.

If you have a good credit score and balanced affordability, it’s easier for the bank to approve the loan.

On the other hand, a bad credit score and tight affordability complicates approval and slows things down.

⭐ Related content:

• Credit scores and credit cards — how to get your card
• How do credit cards work?

 

Final thoughts

A strong credit score can open doors, and it’s worth the effort to build or maintain one.

Here’s what you can do next: check your credit score, address any outstanding debts, and make regular payments to stay in good standing. Even small steps can lead to big improvements.

If you’re struggling with debt, we could help reduce how much it costs every month and free up some of your income for other critical expenses. Try our online assessment at My Debt Hero to see if you qualify.