There is a magic 3-digit number that is going to follow you around for the vast majority of your adult life, and it is going to dictate what you can and cannot buy and whether achieving life goals is going to happen. Making sure this number is happy and healthy is one of the greatest challenges you will face, second only to signing your name on the dotted line of a finance agreement.
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In South Africa, there isn’t a single value for this magic number that guarantees approval, as different banks, such as Standard Bank, ABSA, and WesBank, use their own internal scoring systems, and even individual finance houses use their own calculations. However, based on the major credit bureaus, such as TransUnion and Experian, this is where you ideally want to be before seeking out vehicle finance.
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Credit score tiers
To have a decent chance of approval without jumping through hoops, you should aim for a score of 650 or higher.
| Score Range | Rating | Impact on Car Finance |
| 740 – 999 | Excellent | Easiest approval; likely to get Prime or Prime minus interest rates. |
| 670 – 739 | Good | High approval odds with competitive interest rates. |
| 600 – 669 | Fair | "Decent" but borderline. You may need a deposit or face higher interest rates. |
| Below 600 | Poor | High risk of rejection. You’ll likely need a large deposit or a subprime lender. |
Key factors beyond the number
While your score is the headline fixture, South African lenders look at three other critical factors:
Affordability (The 30% Rule): Banks generally won't allow your car repayment to exceed 30% of your gross monthly income. Even with a 900 credit score, if your debt-to-income ratio is too high, they will decline the application.
Employment stability: Most lenders require at least 3 to 6 consecutive months of payslips and a permanent employment contract.
The deposit: If your score is in the "Fair" range (600–660), putting down a 10%-20% deposit significantly increases your chances of approval, as it reduces the bank's risk.
- Credit health: Make sure your score is healthy, and your chances of successfully completing the finance application are good. A denied application attaches to your score, negatively affects your number, and will prevent further credit applications for at least 6 months.
Check your credit health
Before you head to the dealership, download your free annual credit report from TransUnion, Experian, or use apps like ClearScore or 22seven. Check for any defaults or judgment notices; these are deal-breakers for most vehicle finance houses, regardless of how high your numerical score is.
Note: A score of 0 usually means you have no credit history. While this sounds "safe," banks actually find it risky because they have no proof that you can pay back debt. Opening a small retail account, like at Woolworths or TFG, and paying it off for 6 months is the fastest way to build a score from scratch.
