1 in 3 Homebuyers Would Switch Lenders Over Outdated Credit Scoring — What SA Buyers Should Know

Our take

This is a US-focused story, but it raises questions that are very relevant to South African first-time buyers, renters, and gig workers. In South Africa, credit scoring through the major bureaus — TransUnion, Experian, Compuscan, and XDS — similarly leans heavily on traditional credit products like vehicle finance, credit cards, and store accounts. Consistent rent payments, prepaid utility accounts, and informal income streams rarely boost a buyer's credit profile, even when they demonstrate genuine financial discipline. For South African tenants who have paid rent reliably for years, this gap is frustrating. A renter in Soweto, Mitchells Plain, or Durban North with a spotless payment record but no credit card may still struggle to qualify for a home loan. The National Credit Act does require lenders to conduct affordability assessments, but the underlying credit score inputs haven't kept pace with how many South Africans actually earn and spend. Buyers and renters should take note: start building a formal credit footprint now — a small credit card paid in full monthly, or a clothing account used sparingly, still counts. Landlords and letting agents listing on platforms like Liivra can also add value by issuing formal proof-of-payment records that tenants can use when applying for finance. The broader shift toward more inclusive credit scoring is coming — South African lenders would do well to watch this space.