Things I Wish I Had Learned About Credit When I Was Younger

If I could go back to my school days and add one subject to the timetable, it would be credit management because stepping into adult life without understanding how credit works is like being asked to play a game when no one explains the rules. Back then, I wish someone had told me what a credit score is, why it exists, how I get one, where to check it, and why I would need one someday. These may sound simple but having this knowledge shapes one’s entire financial life.  

Your credit score can decide whether you get approved for your first car, qualify for a bond on your dream home, or get offered a loan at a fair interest rate. It can even determine whether you get a job in certain industries or whether you are able to take out something as simple as a cell phone contract. Yet most of us only find out about credit scores the day we need one, and by then it is often too late to change the story instantly.

I also wish someone had cleared up credit score myths before I carried them into adulthood. For example, many of us grew up believing that simply checking your credit score would damage it. That is not true. Your score only takes a knock when you apply for credit, because that creates what is called a hard enquiry. Checking your own score is a soft enquiry, and it is not only safe, but also one of the smartest things you can do to stay in control of your finances.  

Another myth I wish had been debunked earlier is the idea that closing an old account will improve your credit score. In reality, your credit history matters. Older accounts show lenders that you have managed credit over time. Closing them can shorten your credit history and may even harm your score. Sometimes, keeping a well-managed old account open is better for your financial profile than closing it. 

The truth is that credit is not a monster hiding in the shadows, it is a tool. Used wisely, it can open doors to opportunities and stability. Used without knowledge, it can lock you into cycles of debt and stress. And unfortunately, there are still so many misconceptions that continue to circulate and hold people back from making the most of their financial potential.

That’s why Splendi, powered by Xpert Decision Systems (XDS) was designed to educate and empower South Africans with the financial knowledge they deserve. At Splendi, we believe in a simple approach:  

1. Check your credit so you know where you stand.  
2. Fix the areas that need improvement.  
3. Flourish by using that knowledge to create financial freedom.  

We can’t depend on outdated myths or wait until people face financial setbacks to start teaching them. Credit literacy should be part of the foundation we all leave school with, giving us the freedom to make informed choices and shape our future with confidence.