We discuss how a credit report can help you keep up to date with your financial status by doing a credit bureau check.
If you apply for credit of any kind, a home loan, vehicle finance or a cash loan, the credit provider will probably request your credit report from a credit bureau before granting your application.
In this article, we consider the following questions, which are vital to your financial wellbeing:
A credit bureau is a private company that gathers information relating to your credit history. A credit bureau provides this information (upon request) to credit providers, such as banks, retailers, and financial service companies. The major credit bureaus are TransUnion, Experian, Compuscan and XDS. The National Credit Act (NCA) regulates credit bureaus.
It is a statement provided by credit bureaus to credit providers containing a consumer's credit history, including non-payments, debts, and court judgements.
A credit score is a single number reflecting all the information in your credit report. Financial institutions and retailers rely heavily on an applicant's credit score when deciding whether to grant him/her credit. A high credit score indicates a low-risk borrower; a low credit score means a high-risk borrower.
The term "blacklisted" means there is negative information on your credit report. Contrary to popular belief, there is no actual "blacklist", containing the names of people who can no longer receive credit. The term simply refers to people who have relatively poor credit scores.
There are various factors which cause a low credit score, including:
Every time you apply for credit, the credit provider approaches one or more credit bureaus for a credit report. The bureaus keep a record of these enquiries for one year. A high number of queries by credit providers may indicate that you are in financial difficulties.
If you complain about the information in your credit report, the bureau may dismiss it. A record of the dismissed complaint will remain on your credit report for six months or more.
If you are a late payer, a bureau may classify you as a "defaulter, late or slow payer". The classification will remain for one year or more. This designation will be highly detrimental should you apply for credit.
Should you apply for debt review, the bureau will note this on your credit report. It will remain on your report until your Debt Counsellor issues a clearance certificate.
A sequestration order against you may remain on your credit report for five years, or until a rehabilitation order is granted.
This court order may remain on your credit report for five years or until a court rescinds the order.
A "trace alert" may be noted on your credit report where a credit provider has been unable to contact you.
Enter your details below and we’ll call you back!
There are several methods available to improve your credit profile. They include the following:
We must practice what we call financial hygiene, being fully aware of all the measures referred to in this article to ensure that our credit record remains clean. Doing so will make our lives much easier when is comes to our financial health.
For more information or advice, contact your Legal&Tax debt advisor or a certified Debt Counsellor.
Articles, videos, guides & templates to stay on top of your money matters.
The money hub offers all you need to stay on top of debt.