It can feel discouraging to look at your credit report and see a low credit score when you’re working hard to pay off your debt. The truth is, your credit score is based on several factors — not just whether you’re making payments. Understanding these factors can help you stay motivated and on track as you rebuild your financial health.
Why Your Score Might Still Be Low
It’s easy to assume that as long as you’re paying your debts, your credit score should automatically go up, but credit scoring doesn’t work that way. Your score is influenced by several different factors, and payments are only one part of the picture. Even with steady progress, other elements in your credit profile can hold your score down temporarily.
Think of it like this: your credit score tells the story of your overall financial behaviour, not just your current efforts. Past mistakes, high balances, or even being in a formal repayment plan can all impact how lenders see you. The good news is that these factors don’t last forever, and the more consistent you are, the stronger your credit history will become.
Here are some of the most common reasons your score may still be lower than expected, even while you’re paying your debt:
- Past missed payments still show
Missed or late payments can stay on your report for up to seven years. Even though you’re paying now, those older negative marks still affect your score until they age off. - High balances hurt your utilisation
If you’re carrying a high balance compared to your credit limit, your credit utilisation ratio may be high, which lowers your score. For example, if you have a R10,000 credit limit and still owe R8,000, your utilization is 80%, which is considered high. - Recent credit applications lower your score temporarily
Every time you apply for new credit, a “hard inquiry” is added to your report. Too many inquiries in a short time can make you look like a higher risk to lenders. - A short credit history takes time to build
If you’ve only recently started using credit or don’t have many accounts, your credit file is considered “thin.” A longer history of on-time payments will strengthen your score over time. - Debt review or restructuring affects how lenders see you
If you’re under debt review or a similar repayment program, your accounts may still be flagged as higher risk until the program is complete. This doesn’t mean your efforts don’t count — but your score may only rise significantly after you’ve settled your debts in full and received a clearance certificate.
The Good News: Your Efforts Will Pay Off
Even if your score feels “stuck” right now, every consistent payment you make is moving you closer to financial freedom. Credit bureaus update reports monthly, so it may take a little time before your positive behaviour starts showing.
Here are a few tips to help your score improve:
- Keep making on-time payments every month.
- Try to reduce balances where possible, especially on revolving credit like credit cards.
- Avoid applying for new credit unless it’s absolutely necessary.
- Monitor your score regularly so you can track your progress.
A low score while you’re paying your debt can be frustrating, but it’s only temporary. The longer you stay consistent, the stronger your credit history will become. Think of it as planting seeds: you may not see the growth immediately, but with time and care, your efforts will bear fruit.