25/07/2017
YOU CANNOT IMPROVE YOUR CREDIT RECORD
Let us clear this simple misconception about you and your credit record.
A Credit Record is a report of your credit activities. Your credit activity is captured and submitted by Credit Providers to the Credit Bureaus.
Account Payment History is reported on your record by Credit Providers.
Negative listing like Defaults, Judgments, and Trace Alerts are also submitted to the Credit Bureaus by Credit Providers and the Courts.
Voluntary listings like Debt Review, Administration, and Sequestration etc are listed on your record as they happen by the Debt Counsellor and the Courts.
As you can see, you as a consumer did not play any part in any report that is being submitted to the credit bureaus, such as it is, it is clear that you as a consumer do not have control on any information that is reported to the credit bureau.
Your only obligation in order to maintain a good credit record is to honor your credit agreements with the credit providers without fail.
YOU CANNOT IMPROVE YOUR CREDIT SCORE
There are two types of Credit Scores. The Credit Bureau Score and The Credit Provider Score
The Credit Bureau Score is a formula used by the credit bureau based on the information supplied by the credit providers. This information is used to indicate to you a speculative (meaningless) rating regardless of whether the information supplied by the credit provider is accurate or not. This information is not verified. An example of inaccurate information would be that you have settled your account today, but the credit provider has not updated the credit bureau (yet) and the account still shows an outstanding balance…the credit bureau score that is displayed say 2 weeks later will incorporate the fact that you still have an outstanding balance, until such time that the credit provider updates the bureau…or not.. as it usually happens.
The Credit Provider Score is not based on your credit report or the score displayed on your credit report. Each credit provider has their own unique scoring system (vetting) based on their own risk management points policy. The credit provider score also takes into consideration the affordability restrictions as set out by the NCR. So if the credit provider declines your application and tells you that your credit score is low, they are not referring to the credit bureau score but their own score.
YOU CANNOT USE A CREDIT REPORT but YOU HAVE TO CHECK IT REGULARLY.
In reality, your credit record is not for you to use. The credit report is meant to be accessed by credit providers in order to check your account payment behaviour and verify some personal details when you approach them and apply for credit facilities. The basic personal details on your credit profile are sourced from home affairs and the rest of the information regarding your credit activities is supplied by the credit providers. The only reason you are allowed to access your profile is because it is after all your profile and you are entitled to it, and also that you have to ensure that all details in the report are true and correct as you know them. If you find any incorrect information, you have the right to contact the credit bureau that is displaying such information and request that they correct it. It is important to regularly check your credit profile as a lot of mistakes happen when information is supplied and captured, that is why the NCR has made it a rule that each consumer is entitled to a Free Credit Report once a year.
FREE CREDIT RECORD MAINTENANCE
Below we supply a link where you can access and Claim Free Annual Credit Report from each credit bureau. It is very important that you check your credit report with all major South African Credit Bureaus as each credit bureau receives the information from different credit providers and as a result the information supplied to the one credit bureau might not be available on the other. The Credit Bureaus do not share (synchronize) information.
Alternatively you can subscribe to have a quarterly report delivered to your mailbox every 3 months.
Click here to : http://creditrecords.co.za/free-credit-report
Get your Free Experian and Transunion Credit Record from the credit bureaus.It is every South African's right to obtain a free credit report once every 12 months
