Opening a new credit account in South Africa may temporarily lower your TransUnion credit score due to:
- A hard inquiry from the lender.
- A decrease in the average age of your credit accounts.
- Changes in your credit utilisation ratio.
These effects are usually short-term. If you manage the account well by paying on time and keeping balances low, your score can recover and improve.
Tips to maintain a healthy score:
- We recommend using between 10% and 70% of your credit limit at any time (this is known as your credit usage), and spreading it evenly across all your cards.
- Avoid applying for multiple accounts in a short time.
Note: This information is for general guidance only and isn’t financial advice. Always consider your own circumstances or seek independent advice if you’re unsure about what’s right for you.