Starting your first job is a big milestone. You’re learning a new role, adjusting to a routine, and figuring out how to manage your money. With so much going on, your credit score is probably not top of mind.
When your first salary comes in, most people focus on the basics: rent, transport, food, and maybe a small reward for making it through the month. That’s completely normal.
Why your first salary matters
The financial habits you build from your very first pay cheque can affect your future more than you realise.
According to Gavyn Letley, Product Head at loans provider at DirectAxis, your financial track record usually starts when you earn a regular income.
“This will open doors to financial products, including credit cards, retail accounts and loans. How you choose to use and repay these, as well as meet your other financial obligations, such as rent or a cellphone contract, will determine your credit score,” he says.
What is a credit score and why is it important?
Your credit score is one of the most important pieces of financial information linked to your name. It influences whether banks, lenders and service providers are willing to do business with you.
In some cases, even prospective employers may request to see a credit report as part of background checks.
“It’s one of the most important pieces of financial information about you,” Letley explains. “It determines whether people or companies are prepared to do business with you.”
The importance of budgeting early
One of the easiest ways to stay in control from the start is to set a simple budget.
A budget helps you:
- track your income and expenses
- reduce unnecessary spending
- create space for saving, even if it’s a small amount
Managing your money well from the beginning helps you build a positive credit profile over time.
How a good credit score helps you
A good credit score can make it easier to qualify for loans, car finance and other credit facilities in the future. It can also help you secure better interest rates, as lenders see you as a lower risk.
Over time, this can make a significant difference to your financial stability.
Checking your credit score in South Africa
By law, South Africans are entitled to one free credit report every year from each credit bureau. However, many people aren’t aware of this, or don’t know where to access their report. Others find credit reports difficult to understand.
To help with this, several online platforms now offer free tools that allow you to check your credit score regularly. These platforms usually explain what’s affecting your score in simple terms and offer guidance on how to improve it.
Common credit score myths
One common misconception is the idea of being “blacklisted”.
“People don’t get blacklisted,” says Letley. “Instead, a low credit score can prevent them from qualifying for certain products and services.”
Checking your credit score through legitimate third-party platforms does not negatively affect your rating.
Protecting your financial reputation
Regularly checking your credit score can help you spot problems early. These may include errors on your report or signs of fraud, such as accounts opened in your name without your permission.
Catching issues early gives you the chance to act quickly and protect your financial reputation.
A final thought
Before spending your first pay cheque, take a moment to understand your credit score and how the financial choices you make now could benefit you later.
Your financial reputation starts early. Taking care of it from the beginning can make a real difference.
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