In 2025, many South African students rely on student loans to support their education, and one of the most popular choices is the Fundi Loan.
Whether you’re using the Fundi App, the Fundi Card, or accessing a Fundi Loan to cover university tuition and expenses, it’s vital to understand how these financial tools affect your credit score. A credit score can impact your ability to rent a flat, get a car loan, or even apply for jobs. So, do Fundi Loans help or hurt your credit score?
In this post, we’ll talk about credit bureaus, and provide practical steps to build or fix your credit score. If you’re a student in South Africa wondering how to use Fundi smartly, keep reading.
What is a Credit Score and Why Does It Matter?
Understanding Credit Scores
A credit score is a three-digit number that shows how responsible you are with money. It’s based on your borrowing and repayment history. In South Africa, credit scores are managed by credit bureaus like TransUnion, Experian, and Compuscan. Your score tells lenders whether you are likely to repay a loan on time.
Why Is It Important for Students?
Even if you’re still at university, your credit score matters. Here’s why:
- Banks use it to approve loans or credit cards.
- Landlords may check it before renting to you.
- Employers, especially in finance, may look at it during hiring.
Starting early and building a good score can make adult life much easier.
Do Fundi Loans Help Your Credit Score?
Yes, They Can Help If You Repay on Time
Fundi reports to South African credit bureaus. If you borrow money and pay it back on time every month, it shows that you are responsible. This builds a positive credit history and improves your score.
Positive Effects on Your Credit Score
- Shows that you can manage debt
- Increases your creditworthiness
- Makes future borrowing easier
Real-Life Example
Lebo, a 3rd-year student at the University of Pretoria, took a Fundi Loan in 2023. By making all repayments on time, her credit score increased by 70 points in one year. Now, she’s eligible for a low-interest car loan.
Can Fundi Loans Hurt Your Credit Score?
Yes, If You Miss or Delay Repayments
If you skip payments or pay late, Fundi will report this to credit bureaus. Negative payment history lowers your credit score.
Consequences of Missed Payments
- Late fees and penalties
- Negative reports on your credit profile
- Lower chances of loan approval in the future
Tips to Use Fundi Loans Responsibly
1. Only Borrow What You Need
Don’t borrow more than you can repay. Keep your loan amount realistic.
2. Set Reminders or Auto-Debit
Always repay on time. Use phone alarms or automatic payments.
3. Use the Fundi Card Smartly
Don’t overspend. Treat your Fundi Card like cash from your own pocket.
4. Check Your Credit Score Regularly
Stay informed. Use TransUnion, Experian, or ClearScore.
How Fundi Reports to Credit Bureaus
Credit Bureaus in South Africa
- TransUnion: Offers free credit reports yearly.
- Experian: Offers credit scoring tools.
- Compuscan: Tracks payment history.
Fundi sends updates about your repayment history to these bureaus monthly.
What Are the Benefits of Good Credit as a Student?
- Easier approval for future student loans
- Better interest rates on car loans or personal loans
- Increased chance of renting off-campus housing
- Access to emergency credit or overdrafts
What Happens If I Default on a Fundi Loan?
- Your account may be handed over to collections.
- It becomes harder to borrow money in the future.
- Legal action may be taken.
Alternatives to Fundi Loan
- NSFAS (National Student Financial Aid Scheme): Government funding for qualifying students
- University scholarships and bursaries
- Student work-study programmes
- Private bank student loans
How to Check and Improve Your Credit Score
Step-by-Step Guide
- Visit a credit bureau website (like TransUnion).
- Register and verify your ID.
- Download your credit report.
- Review for errors or missed payments.
- Contact the bureau to fix errors.
- Start paying your debts on time.
Conclusion: Do Fundi Loans Help or Hurt?
Fundi Loans can help your credit score if you use them responsibly. They allow you to build a solid credit history early in life. But if you misuse them, miss payments, or borrow too much, they can harm your credit score for years. As a South African student in 2025, managing your Fundi Loan wisely through the Fundi App and Fundi Card can set you up for financial success.
So yes—Fundi Loans help when you respect the terms and build good habits. But they hurt if you don’t pay on time. The choice is in your hands.
Frequently Asked Questions About Fundi Loans and Credit Scores
Q1: Does applying for a Fundi loan affect my score?
A: Yes, slightly. Any credit application may cause a small drop, but it recovers quickly.
Q2: How long does a missed payment affect my score?
A: Negative records can stay on your credit report for up to 5 years.
Q3: Can I fix my credit if I miss a Fundi payment?
A: Yes. Catch up on payments, and avoid missing any future ones.