How to interpret your credit report in South Africa?

i-Check Data Solutions can offer you one of the most comprehensive consumer credit reports on the market.  our team have put this article together to help our customers interpret your credit report in South Africa. Understanding your credit report is very important and if you understand how your credit score is created, it can actually help you to save money in the long term.
Most of the time when you are rejected for a loan, it is primarily down to you failing to meet the requirements needed for a clear credit check. Different credit providers have different risk models, but the general rules apply. Many South Africans simply don’t understand how their credit history works and how this in turn affects their ability to borrow. The easiest way to get your credit health on track is by taking steps to get your hands on a copy of your credit report.
Every citizen in South Africa is entitled to a free copy of their credit report annually, so basically once a year you are able to contact one of the  four credit bureaus and request a copy of your report. Very few people take up this offer and its really to their detriment.
This article is here to help you understand and interpret your credit report, the report is pretty standard across the various bureaus, firstly you will see your

1. Contact information and employment status

Every credit report will carry contact information of the individual for whom it has been created. This information is compiled from the latest loan application and is stored by the credit provider in the event they need to make contact with the individual.

Furthermore, you will also find in this section other forms of personal information such as your marital status,  your spouse’s information and employment related information. You will need to ensure that all this information is accurate and valid in order to improve your chances of getting your loan approved.

2. Credit summary

The next section covers your credit summary, this is a collection of your entire credit history, information on adverse collections, judgements if any and any black listing would be found here. This section is important as it will seriously impact you ability to get a loan if its impaired.

    1. Judgements: What is a judgement, this is a court order directed at the borrower to pay an outstanding amount to the Lender.
    2. Notices: Notices are various other forms of lender legal action such as administration orders, sequestration, and rehabilitation orders.
    3. Default: Defaults are listed by lenders for non-payment of the monthly instalments. These mainly have to do with you missing your payments towards credit accounts.
    4. Trace alert: Trace alerts are placed on credit records by lenders looking for new contact information about a borrower because the previous one is inaccurate.
    5. Consumer remark: This is information pertaining to your situation. A good example of this is a case of your identity document being stolen. In such a situation, this information would be put on your credit report so that potential enquirers can also see this fact.
    6. Enquiry: Enquiries are instances of your credit report being accessed by lenders in the country. These are recorded and put in your credit report. The enquiries section would contain all enquiries made for your credit report in the last two years.
    7. Notarial bond: A Notarial bond will be entered on your report by the Registrar of Deeds. It is not considered to be negative.

3. Payment profile or account history

This section would contain the summary of all your accounts in terms of their opening dates, amount of money borrowed, the payment conditions, your payment history, and outstanding balance.

Getting and interpreting your credit report periodically is something that is very important because it not only gives you a chance to improve your credit history but also allows you to pinpoint cases of identity theft.

i-Check Data Solutions can provide you with one of most comprehensive credit reports available in South Africa currently. Our top of the line report retails for R 20.00 ex vat and available immediately. We really advise clients to take an interest in their credit health especially if they are planning a large credit purchase. Taking note roughly 90 days before applying for the loan will give you ample time to fix any issues that are present and this will straighten your chances of getting the credit and may even help you get a better lending rate.

interpret your credit report in South AfricaIf you would like to know more about our credit health report, please don’t hesitate to contact one of our friendly sales consultants today! In order to become a user please register your details by following the link LOGIN.