What is the minimum credit score to buy a car in South Africa 2023? Owning a car is everyone’s dream. In order to buy a car in South Africa you need a minimum credit score. Having a good credit score allows the bank to even consider your car loan application. In this article, we answer the question ‘What is the minimum credit score to buy a car in South Africa 2023‘. Read on.
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What is a Credit Score?
A credit score is a number from 300 to 850 that lenders use to check a consumer’s creditworthiness. A credit score helps lenders decide how likely it is that they will be repaid on time if they give you a loan or a credit card. This can influence the interest rate you would be offered.
What is the Minimum Credit Score to Buy a Car in South Africa in 2023
To qualify for a car finance in South Africa, you need to have at least a minimum credit score of 580 and 669. Your credit score rating is fair and you are considered to be a subprime borrower and the dealership will consider your car application. Meaning the bank may find it more difficult to qualify for better loan terms.
Generally credit scores from 580 to 669 in South Africa are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
According to autotrader.co.za, 800 and 850, your rating is exceptional and you are considered to be at the top of the list for the best interest rates from lenders.
Minimum Credit Score to Buy a Car in South Africa
Credit scores range from 300 to 850. In order to buy a car in South Africa, you may want to aim for as high a score as possible as a good score will give you a better chance of your vehicle loan being approved by the bank and at a favourable rate.
If you have below-average scores – 581 and lower, you are at very high risk, therefore, getting a vehicle loan will be extremely difficult or they will have to pay very high-interest rates.
The below table shows credit score ranges in South Africa
| Credit Score | Risk |
| 1 – 580 | Very high risk |
| 581 – 599 | High risk |
| 600 – 619 | Average risk |
| 620 – 649 | Low risk |
| 650 – 999 | Minimum risk |
How to Improve Your Credit Score in South Africa?
Here’s how to boost your credit score:
- Do not miss payments
- Try to settle the outstanding debt as quickly as possible
- Reduce spending wherever you can
- If you have no credit score, try opening some small retail accounts and pay it back on time and in full each month
- Never overspend
- Avoid using credit
Image Courtesy: nfcc.org
