Thrive in 2025: Learn how credit can work for you

It's late January - a time when many people are all too familiar with the use of credit to cover those turn-of-the-year expenses. But did you know that you can make credit work for you?

When used wisely, credit isn't just for spending - it's a powerful tool for building long-term financial success. Find out how Discovery Bank's credit solutions can help achieve your goals.

But first, what's a credit score and why should I care?

Your credit score is like a report card from the credit bureaus for your financial health. It tells financial institutions how reliable you are with money. Here are six ways to keep your score in top shape:

1. Pay off unsecured debt as quickly as possible. Debt that's not backed by collateral, like that from credit cards, and personal loans, often comes with higher interest rates compared to secured debt, like a home or car loan. Save in the long term by prioritising paying off as much of your higher interest debts as you can save first.
2. Make the most of your interest-free periods. Where possible, you can also save on interest charges with qualifying interest-free credit card purchases by settling your account in full every month.
3. Keep the amount of credit you use low relative to your limit. Regularly using high portions of your available credit limit can hurt your credit score. Although regularly using your credit card and paying it off each month is positive behaviour, consistently maxing out your credit score. limit each month could work against you.
4. Ensure you have enough available funds for monthly payments. Missing payments can damage your score for over a year. This includes funds not only for settling your credit product repayments, but also any other financial obligations such as gym memberships and cellphone contracts.
5. Always pay on time. Even if you usually make manual payments into your accounts, setting up a payment debit order or scheduled payment is an extra safety net to pay your accounts in case you forget. Late payments are a red flag for lenders.
6. Don't let monthly credit repayments take up too much of your income - this signals financial strain. Manage repayments by paying off credit as fast as possible, using available credit responsibly, and avoiding taking out credit limits higher than you're comfortable you can afford.

A healthy score opens doors!

Why does this score matter? A higher credit score gives you access to better borrowing options when you need them, like when you want to buy a car on finance or take out a home loan. This could help secure lower interest rates, which can save you hundreds and thousands of Rands in the long run on larger, longer-term purchases

How to use credit the smart way

Make credit work for you with these simple habits:

• Borrow only what you can afford to repay. For bigger goals, patiently save and invest.
• Focus on clearing high-interest debt first.
• Maximise value with credit card rewards and benefits (luckily, Discovery Bank offers loads of these!)
• Set a budget and stick to it to keep your payments manageable.

Discovery Bank's credit solutions

We offer a range of credit options to suit your needs. Here's how they stack up: