Which Subscription Will Build Your Credit Score In South Africa?

By Tevait Feanle •  Updated: 03/17/24 •  5 min read

Can subscriptions to services like Netflix boost your credit score in South Africa? This is a common question, as they are helpful in some overseas markets, like the U.S. South Africa uses a different regulatory landscape, however, and subscriptions will not universally count towards building your creditworthiness. Let’s take a look in more depth.

- ADVERTISEMENT -

Which Subscription in South Africa Will Build Your Credit Score?

In many international markets, most notably the U.S., different reporting standards and a broader definition of ‘credit’ means that subscription services like Netflix and Hulu are counted on your credit report. Through Experian, you can now sign up for a BOOST program that weights this sort of payment for your credit report. In South Africa, you will often see monthly payment accounts shown on your credit report, too, such as Telkom and Vodacom. However, they don’t have the same kind of effect on your credit report. 

Only those that can genuinely be counted as credit, even short-term credit, will have an impact on your credit score. For the most part, this means cell phone contracts only. While all rental payments theoretically should be reported, many landlords simply don’t bother, so this can be a double-edged sword. Streaming and gaming subscriptions, as well as app subscriptions, will often not be reported at all as they are seen as immediate payments, equivalent to cash, not credit. That said, showing a good payment record will always help you in your quest for credit, so be sure to pay on time and cancel services you don’t need timeously. 

What is the Fastest Way to Raise Your Credit Score in South Africa?

Regrettably for those with a poor credit score, there is no quick-fix way to raise your credit score fast. It will always come down to taking charge of your debt, paying off outstanding balances, and improving your credit behavior by using less of your total balances and paying on time. Over time, this will boost your credit score. How long it takes to see a specific rise, however, depends entirely on your individual circumstances, and how poor your credit profile was to start with. 

What Apps Help Improve Credit Scores?

While there are a few apps in South Africa that will help you track your credit score, such as some banking apps and the ClearScore app, there is no app, even subscription apps, that will help you build credit. Most app store purchases, regardless of platform and even those that take a monthly subscription fee, are seen as immediate or ‘cash’ payments and not a credit line, so they don’t count on your credit report. 

- ADVERTISEMENT -

Do Cell Phone Contracts Build Credit in South Africa?

Cell phone contracts are a viable way to build credit in South Africa, especially if you are paying them by debit order from your bank. However, as they are small value and count as short-term loans, their impact on your credit score will not be massive. It can still be a great way to start building your credit history, however!

How Do I Add Streaming Services to My Credit Report?

In the U.S., you can sign up for the Experian BOOST option to have these small, regular subscription service payments added to your credit profile, but they have not yet rolled this service out to Experian in other countries. Hopefully, that will change soon! Experian does offer the GeleZAR app in S.A. currently, but that is focused on education, not your actual credit score. There is currently no option to ‘add’ things to your credit report. Whether or not the financial institution reports it to bureaus will be key. 

There is a smart trick you can use to leverage your streaming services to help your credit, however. Sign up for them using a credit card, and pay off the subscription in a rolling 60-day window, so your credit card stays active and registered as debt you are using at the credit bureaus. A 30-day window will not be enough, as settling a credit card balance within that time frame counts as ‘cash’ purchases. 

Don’t be shy to ask the subscription service provider if they report to the bureaus, too. Some do, while others don’t. That way you can choose a partner that will directly report your account for use on your credit report. Remember that these types of monthly payment services are not particularly important to building a credit score, however. Actual credit lines, like store cards, credit cards, mortgages, and loans, will have a much greater impact. Still, showing you pay the subscription monthly on time will have a small positive impact, and cell phone contracts are treated as a full credit line.

While we can’t yet leverage all of our subscription services to build credit history in South Africa, the financial landscape is always changing. Lenders also like to see regular, timely payments on accounts, which can help a little. For now, however, your streaming and other ‘fun’ subscriptions won’t build your credit history for you. 

- ADVERTISEMENT -

Keep Reading

How to Temporarily Unfreeze Your TransUnion Credit Report?

How to Temporarily Unfreeze Your TransUnion Credit Report?

Today we will look at how to deal with this circumstance, using TransUnion as an example. 

How Much Do Estate Agents Charge For A Credit Check

How Much Do Estate Agents Charge For A Credit Check

This piece will provide some information that tends to address how much an estate agent can charge for a credit check

What is the Credit Score For Mortgage in South Africa?

What is the Credit Score For Mortgage in South Africa?

What is the Credit Score For Mortgage in South Africa. This guide looks into the credit score requirements to secure a home loan within South Africa.

How to Buy A House With No Credit Check

How to Buy A House With No Credit Check

Let us take you through buying a house with no credit check and other series of questions pertaining acquiring a house connected to credit.  

Can I Get A Credit Card If Blacklisted?

Can I Get A Credit Card If Blacklisted?

Today, we will unpack everything you need to know about getting a credit card with a poor credit score, as well as some updated facts about ‘blacklisting’

How to Use Credit Card to Increase Credit Score

How to Use Credit Card to Increase Credit Score

Here is an insight into how your credit card can help enhance your credit score and financial health.

What Does It Mean When You Don’t Have No Credit Score?

What Does It Mean When You Don’t Have No Credit Score?

The Credit Score Required For a Home Loan

The Credit Score Required For a Home Loan

If you see a shiny new set of house keys in your future, then it is time to pay serious attention to your credit score. 

How Will Filing Bankruptcy Affect My Credit Score

How Will Filing Bankruptcy Affect My Credit Score

Now let us look at the relation between credit score and bankruptcy. In the end, we should be able to see how filing for bankruptcy affects your credit score. 

Why Is My Credit Score Different on Equifax and TransUnion?

Why Is My Credit Score Different on Equifax and TransUnion?

Today we will explain why in depth, and help you to better understand these differences. 

How Many Points Does A Credit Check Take Off?

How Many Points Does A Credit Check Take Off?

in today’s blog post, our focus will be much more on credit checks and the number of points it takes from your credit score.   

Can You Open A Checking Account With A Bad Credit?

Can You Open A Checking Account With A Bad Credit?

This article tries to delve into the possibilities in an attempt to give answers to an individual needing to open a checking account with less-than-perfect credit scores.

Why Your Credit Score Goes Down When Checked

Why Your Credit Score Goes Down When Checked

Today we look into the facts behind this common myth, when a credit check will really pull down your credit score

What Credit Score Will Prevent You From Getting A Job

What Credit Score Will Prevent You From Getting A Job

What Credit Score Will Prevent You From Getting A Job. This writing looks at the effects of credit grades on job positions

How to Improve My TransUnion Credit Score

How to Improve My TransUnion Credit Score

This article explores the measures you can take to improve your TransUnion credit score if it is below average.