How New Immigrants Can Build a Credit History in South Africa.

For many immigrants, financial stability in a new country begins with a number they do not yet have: a credit score.

A credit report is a snapshot of an individual’s financial behavior. It reflects how debt is managed and helps lenders assess how likely someone is to repay borrowed money. In South Africa, this information is condensed into a credit score, a number that influences whether you can buy a house, finance a car, secure a rental property, or even purchase everyday items such as furniture or clothing on credit. It can also determine how much interest you pay on loans.

For new immigrants, this system presents a significant challenge. Credit histories from other countries do not automatically transfer to South Africa, meaning many newcomers must start from zero. Beyond that, there is often a learning curve understanding how credit works locally and unlearning assumptions carried over from previous countries of residence. Patience, education, and informed guidance are essential in navigating this process.

Starting Over in a New System

When my husband and I arrived in South Africa, we were both on student visas. This type of visa has limited access to the financial system: opening bank accounts, opening investment accounts, obtaining driver’s licenses, and taking on restricted student work.

Our situation changed when my husband obtained a critical skills visa. A critical skills visa allows holders to begin building a credit profile, though this credit is initially linked to a passport number rather than a South African ID. After receiving this visa, one becomes eligible to apply for permanent residence, a process that, in our case, took around six months.

Our Route to Building Credit

There is no single path to building a credit score, but the route we followed worked for us.

Most retail stores require a South African ID or permanent residence status to open store accounts. After several attempts, we successfully opened an account with Identity. Our initial credit limit was modest, around R500, but it increased steadily as we demonstrated consistent, responsible use.

Several months later, we were able to finance a mobile phone. Telkom approved our application, while other service providers declined due to a lack of credit history or ID requirements. Telkom became a key indicator that our credit profile was taking shape.

At this stage, we also learned the importance of monitoring our credit. In South Africa, consumers are entitled to one free credit report per year from each major credit bureau. The four main bureaus are Experian, TransUnion, Compuscan, and XDS. Credit providers submit monthly transaction data to these bureaus, which then compile a report detailing credit applications, active accounts, repayment history, and any defaults or judgments.

When applying for credit, lenders access one of these reports, typically reviewing up to two years of financial behavior. This information is used to generate a credit score, generally ranging from 300 to 850. The higher the score, the lower the perceived risk and the better the chances of approval and favorable interest rates.

Progress and Transition

Over time, our improved credit profile allowed us to finance larger purchases, including a vehicle. All of this was still under the critical skills visa and linked to a passport. Once my husband's permanent residence and South African ID were issued, the next step was transferring our credit history with both Identity and Telkom.

We considered applying for a credit card but decided against it. We were cautious about taking on too much credit too quickly or appearing “credit hungry,” which can negatively affect a credit score. Responsible pacing mattered more to us than rapid expansion.

Practical Advice for New Immigrants

For those arriving in South Africa on a work visa, a gradual approach can be effective. Opening a retail account, such as with Identity, can be a first step. After a few months of consistent payments, applying for a phone contract or even vehicle financing may become possible, depending on income and documentation.

When we applied for retail and service credit, the following documents were typically required:

• Three months’ bank statements
• Three months’ pay slips
• Employment contract
• Employer confirmation letter
• Proof of residence
• Passport or South African ID with a valid work permit
• A clear personal budget outlining income and expenses

Understanding your finances is crucial. Lenders assess not only your credit history but also your affordability.

A System That Requires Navigation

South Africa’s credit system is robust, but it is not immediately accessible to everyone. For immigrants, building a credit score is less about shortcuts and more about consistency, education, and time. With the right information and measured decisions, it is possible to move from financial exclusion to full participation in the system.

For many newcomers, that journey begins with a single account and the patience to let trust and credit grow.