Credit 101: The ABCs of Managing Your Credit Wisely

Ladies, let’s talk credit. It’s something most of us use, many of us worry about, and too few of us fully understand. Yet, managing your credit wisely can be one of the most powerful tools in your financial wellness toolbox.

We’ve all heard the stories—missed payments, scary credit reports, or loans that ended up doing more harm than good. But here’s the thing: it doesn’t have to be that way. With a little knowledge and a few smart habits, you can take control of your credit and turn it into an asset that works for you, not against you.

Mariné van Brakel, Deputy CEO at RCS, says it best:

“Studies have shown financial literacy to be a foundational element in effective debt management. At RCS, we’re committed to empowering consumers with the knowledge they need to make informed decisions and secure a better financial future.”

Let’s break down exactly how you can do that.

What Impacts Your Credit Score?

Your credit score is basically your financial reputation. It tells lenders how reliably you manage debt—and it can open doors or quietly close them. Here are the key factors that influence it:

• Payment History
  Making even the minimum payment on time shows you’re reliable. Missed payments, on the other hand, can hurt you fast. Try setting up automatic payments or calendar reminders to stay ahead.
• Credit Utilisation
  This is about how much of your available credit you’re using. A good rule of thumb? Keep it under 30%. If your credit limit is $10,000, try not to owe more than $3,000 at any one time.
• Length of Credit History
  The longer your credit accounts have been open and active, the better. If you’re just starting out, consider opening a small credit card or store account—then use it responsibly to build history.
• New Credit Applications
  Every time you apply for credit, it leaves a mark. Too many new applications in a short period can look like a red flag to lenders.

“There are many moving parts that make up a credit score and each of these factors contributes to a holistic picture of your financial behaviour and trustworthiness,” says van Brakel.

Rebuilding and Strengthening Your Credit

We’ve all made money mistakes—what matters most is what you do next. Rebuilding your credit is 100% doable, and it starts with knowing your current score.

“It’s important to look for inaccuracies and dispute any errors, as these can impact your creditworthiness,” van Brakel adds.

A great place to start? RCS has partnered with the Welltec Group to offer free access to your credit report and score via the Credit Gateway platform. All you need is your ID number, and it only takes five minutes. Bonus: checking your score this way won’t impact it.

Once you know where you stand, you can start making changes:

• Always pay your bills on time
• Avoid maxing out your credit cards
• Don’t open new accounts unless necessary
• Make a budget—and stick to it

Each of these habits builds trust with lenders and strengthens your financial profile.

Why It Matters

Whether you’re saving for a home, planning a big move, starting a business, or simply trying to stay in control—your credit score plays a key role.

“RCS and other credit providers use your score as a key indicator of risk, meaning that a higher score often results in more favourable conditions,” van Brakel explains.

That could mean lower interest rates, bigger loan options, or even the ability to negotiate better terms. It’s not about chasing debt—it’s about making credit work for you.

And beyond the numbers, it’s about freedom. Having access to responsible credit means you can invest in your goals and take steps toward the future you want—whether that’s furthering your education, buying property, or funding a side hustle you believe in.

“Understanding credit is not just about avoiding debt; it’s about using it as a tool to enhance financial stability,” van Brakel adds. “By taking proactive steps to manage credit responsibly, consumers will be better positioned to build a stronger financial foundation for their future.”

Bottom line? Credit doesn’t have to be scary, confusing, or off-limits. You just need the right information—and the confidence to take control. So whether you’re repairing your credit, building it from scratch, or fine-tuning your financial strategy, remember: knowledge is power, and your financial journey is yours to own.