Is your credit score valid in other African countries?

A good credit score allows you to access credit when you need it the most. However, will your credit score still help you land a loan if you move to a neighbouring country?

We approach experts to ask about cross-border credit, and the steps you can take to ensure that your credit score is healthy.

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Can you use your credit score in other African countries?

The Southern African Customs Union is an economic trade block that allows for easy commerce among five Southern African countries, namely South Africa, Namibia, Botswana, Eswatini, and Lesotho. Its goal is to facilitate and encourage trade by reducing cross-border barriers.

With this kind of partnership in place, it seems reasonable to assume that your credit score would be valid within these borders, and perhaps others too.

However, Kriben Reddy, vice president of TransUnion Consumer, explains that every country has different credit regulations and protocols, and not all countries embrace the use of scores equally.

“Because your South African credit score is calculated on your credit history and payment behaviour in South Africa, it will not necessarily be relevant to credit you apply for in other countries,” says Reddy.

READ MORE: Is your credit score valid internationally?

Take care of your credit score

A good credit score is crucial to securing a loan, particularly for assets of higher value, such as a home or car. In addition, the higher your credit score, the better the deal you are likely to attract.

“If you don’t have a history of paying your debt on time, this can cause an application to be declined or can result in lower credit limits being extended to you,” says Vere Millican, executive of credit and data science at African Bank.

If, despite your diligence in managing your debt, you have an inexplicably low credit score, data errors could be to blame. For this reason, you should regularly check your credit report. Millican suggests looking at the following in particular:  

• Is your personal information up to date, such as your address and contact details?
• Are there any enquiries or accounts reflecting on your credit report that you don’t recognise?
• Are there any accounts that you have closed that still reflect as open?
• Are there any accounts that are still open, but reflect as closed?

“It's never too late to begin working towards an improved credit profile,” says Millican. “It could be the critical factor that enables you to purchase your dream house, finance a vehicle, pay emergency medical expenses, or further your studies one day.”

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