How alternative credit data is helping more South Africans buy homes

Article insights:

• Alternative credit data is helping South Africans without traditional credit histories qualify for home loans.

• Banks are using cellphone usage, e-commerce activity and digital behaviour to assess creditworthiness more holistically.

• Gig workers and self-employed earners can benefit from non-traditional indicators like consistent mobile payments and platform ratings.

• Managing existing credit responsibly and avoiding multiple applications remains critical when applying for a bond.

• Home loan pre-approval improves approval chances and gives buyers clarity on affordability before house hunting.

With a favourable lending environment and a relatively stable rand, 2026 may be an ideal time to apply for a bond. But for the estimated 16 million South Africans excluded from the credit system because they lack traditional credit histories, accessing home finance will increasingly depend on lenders adopting a more complete, 360-degree view of creditworthiness – including alternative credit data.

“It’s not enough to only consider earning power, unbonded assets and traditional credit history,” says Bradd Bendall, BetterBond’s National Head of Sales. “E-commerce activity, social media behaviour, cellphone usage and even geolocation data are examples of alternative credit data that can provide deeper insights into reliability and repayment behaviour.”

As data analytics company Principa notes, “When used ethically and with appropriate consent, alternative data provides a more nuanced view of a borrower’s financial habits and reliability.” South African lenders are already incorporating alternative credit data into their assessments.

By expanding beyond traditional credit scores, banks can build more holistic financial profiles and establish credit records for consumers with limited formal histories, says Bendall. This shift is especially significant given TransUnion’s estimate that 16 million consumers are currently excluded from the credit system. “Using alternative credit data helps level the playing field, giving more aspiring homeowners a legitimate chance to qualify for a bond,” he adds.

Cellphone data

Many banks now use mobile phone payment behaviour as a form of alternative credit data when assessing bond applicants. By analysing Call Data Records (CDRs), lenders can identify patterns such as airtime top-ups, prepaid recharge consistency and data usage over at least six months – behaviours that strongly correlate with repayment reliability.

When combined with traditional credit information, this alternative credit data creates a fuller picture of an applicant’s financial behaviour while still complying with POPIA consent requirements. For gig workers or the self-employed, consistent cellphone payments can be a strong indicator of reliability. “BetterBond can leverage these insights for more effective bank negotiations,” says Bendall.

Uber ratings

For self-employed individuals or those working in the informal economy, metrics such as Uber ratings are also emerging as useful alternative credit data points. High ratings signal reliability, professionalism and consistency – traits lenders increasingly associate with responsible loan repayment. For consumers without payslips or formal documentation, this type of data can help demonstrate creditworthiness.

Be credit savvy

While alternative credit data is expanding access to home loans, traditional credit behaviour still matters. Bendall emphasises the importance of understanding how credit works and managing it responsibly. “A healthy credit score remains a key factor when applying for a bond, so consumers should check their score with a credit bureau before applying.”

Keeping credit card balances low, paying accounts on time and avoiding excessive debt are simple and straightforward steps to raising your credit rating. Multiple credit applications in a short period can raise red flags, signalling financial pressure. “If 2026 is your year to buy, avoid unnecessary credit applications in the months leading up to your bond application,” Bendall advises.

Pre-approval as a credit check

Bendall strongly recommends applying for bond pre-approval. Because the process includes a full credit assessment and uses the same documentation required for a home loan, it provides a realistic view of affordability.

It also significantly improves approval prospects. BetterBond’s data shows that 95% of clients who obtain pre-approval are ultimately approved by a bank. “Pre-approval also makes buyers more attractive to sellers, as it signals serious intent,” Bendall adds.

As alternative credit data becomes standard in lending decisions, more South Africans will have the opportunity to achieve homeownership. With 2026 shaping up to be a strong year for buyers, there has never been a better time to get credit fit.