Best Store Accounts for Low Credit Scores in South Africa

Having a low credit score or no credit history at all can make it challenging to access credit. South African consumers often face difficulty getting approved for credit cards and loans due to a low credit history. The good news is, there is a way of rebuilding your credit score using store accounts.
If you have a low credit profile and looking to rebuild it through store accounts, this article is for you. From key features, benefits and eligibility, this guide is your go-to.
Why Store Accounts are A Good Idea
Retail store accounts are credit products that allow the consumer to shop on credit. With more relaxed eligibility requirements, they are typically easy to obtain for consumers with a low credit profile. They offer lower credit limits with manageable repayment plans.
The key benefit is that they allow the consumer to rebuild their credit profile and prove their creditworthiness.
1. RCS Store Card
The RCS Store Card is one of the most widely recommended store cards for individuals who want to build or rebuild their credit. With this card, you can shop at over 30,000 stores across South Africa, including well-known retailers in fashion, groceries, electronics, and home goods.
Features and Benefits of the RCS Store Card:
- Wide Acceptance: The RCS Store Card is accepted at a broad range of retailers across various sectors, including fashion, electronics, home appliances, and groceries.
- Interest-Free Period: You can enjoy up to 55 days interest-free if you pay your balance in full by the due date. This gives you more time to pay without incurring interest charges.
- Flexible Repayment Terms: You can choose affordable monthly instalments, making it easier to budget for your purchases. The store card also offers the option of paying off your balance over several months, which helps to manage your expenses.
- Online and In-Store Shopping: Whether you prefer shopping online or in physical stores, the RCS Store Card allows you to do both.
Eligibility Criteria for the RCS Store Card:
To qualify for an RCS Store Card, you must meet the following criteria:
- Be 18 years or older
- Have a South African ID or driver’s license
- Be employed with a monthly income of at least R2,000
- Provide proof of income, such as payslips or bank statements
While the card is great for building credit, be aware that it may come with higher interest rates compared to standard credit cards. However, if you manage your payments responsibly, this won’t be an issue.
2. Edgars Card
The Edgars Card is another popular option for individuals looking to build credit. Edgars is one of South Africa’s largest retail chains, offering a wide range of fashion, beauty products, and home goods.
Features and Benefits of the Edgars Card:
- Credit History Building: The Edgars Card is accessible to people with no or low credit, making it an excellent choice for those just starting to build their credit. Many users recommend it as a starter card for beginners.
- Usage Across Multiple Stores: In addition to Edgars, the card can be used at JetMart for groceries, making it versatile and convenient.
- Reward Program: Edgars offers a loyalty program where cardholders can earn points on their purchases, which can be redeemed for discounts on future purchases.
- Easy Repayment Plans: Edgars offers flexible payment options, allowing you to manage your finances better by spreading the cost over several months.
Eligibility Criteria for the Edgars Card:
To qualify for the Edgars Card, you typically need to meet the following criteria:
- Be 18 years or older
- Have a South African ID
- Earn a regular income (the specific amount required may vary depending on the credit assessment)
By paying off your balance regularly and avoiding unnecessary purchases, you can build a positive credit history over time.
3. Tekkie Town Card (Pepkor Group)
Tekkie Town is a popular retailer in South Africa, selling footwear and sportswear. It also falls under the Pepkor Group, which includes stores like Ackermans, Refinery, Shoe City, and Dunns. The Tekkie Town Card is ideal for individuals with low credit scores because it offers relatively easy approval.
Features and Benefits of the Tekkie Town Card:
- Multiple Store Access: With the Tekkie Town Card, you can shop at several stores within the Pepkor Group. This provides a wide variety of products to choose from.
- Hardship Cover: The card offers hardship cover, which can help you in case of an emergency or unexpected financial difficulty.
- Supplementary Cardholders: You can share the card with supplementary cardholders, which can be helpful for managing family purchases.
Eligibility Criteria for the Tekkie Town Card:
To apply for the Tekkie Town Card, you need to provide the following:
- A South African ID
- Recent payslips or bank statements
- Proof of income
This card is a great option for building credit while enjoying discounts and special offers at a range of stores.
4. Clothing Store Accounts (Mr Price, Sportscene)
Several clothing retailers in South Africa, such as Mr Price and Sportscene, offer store cards that are ideal for individuals with low credit scores. These cards are part of the TFG Group (The Foschini Group) and are designed to help consumers build credit with smaller, manageable purchases.
Features and Benefits of Mr Price and Sportscene Cards:
- Simple to Qualify: These store cards are often easier to qualify for, especially if you have a limited credit history or a low credit score.
- Help Build Credit: The cards allow you to make smaller purchases that are easier to manage, making it a great way to build a positive credit history over time.
- Regular Promotions: Mr Price and Sportscene regularly offer sales and discounts to cardholders, allowing you to save money while shopping.
Eligibility Criteria for Mr Price and Sportscene Cards:
To qualify for a Mr Price or Sportscene card, you need to meet the basic criteria:
- Be 18 years or older
- Have a South African ID
- Provide proof of income and other supporting documents (such as bank statements)
These cards are often recommended for those who are just starting to build their credit history.
5. Furniture and Home Store Accounts (OK Furniture, House & Home)
If you’re looking to buy home furniture or appliances, consider applying for a store account with OK Furniture or House & Home. Both of these retailers offer store accounts with low deposits and flexible payment plans.
Features and Benefits of OK Furniture and House & Home Credit:
- Low Deposit and Flexible Payments: OK Furniture and House & Home offer credit with low deposits, making it easier for you to access essential home goods.
- Long Repayment Terms: You can choose from flexible repayment terms, typically ranging from 6 to 36 months, depending on the total value of your purchase.
- Simple Approval Process: These stores have relatively simple approval processes, making it easier for people with low credit scores to qualify.
Eligibility Criteria for OK Furniture and House & Home Credit:
- South African ID
- Proof of income (payslips, bank statements)
- Proof of address
- Ability to make regular payments
These store accounts can help you purchase necessary items for your home while building credit over time.
Additional Tips for Rebuilding Credit with Store Accounts
- Make Timely Payments: The most important factor in building your credit score is making timely payments. Ensure you always pay at least the minimum monthly repayment on your store account, preferably paying off your full balance to avoid interest.
- Avoid Overextending: While it might be tempting to make big purchases, try to avoid spending beyond your means. Start small and gradually increase your credit usage as you get more comfortable with managing payments.
- Limit Credit Applications: Applying for too many credit products in a short period can negatively affect your credit score. Only apply for the store accounts that you really need.
Check also: Smart Budgeting: How to Save Money on Groceries Without Compromising Quality
Opening a store account with a low credit score or no credit history in South Africa is a practical way to start building or rebuilding your credit score. By choosing the right store account and following responsible credit practices, you can improve your creditworthiness and qualify for better credit products in the future. Whether it’s shopping for clothes, home appliances, or groceries, there are several options to choose from that offer flexible repayment plans and opportunities to improve your financial health.