Vital to check your credit record

Many consumers do not know the role of credit bureaus

MOST people have no idea how creditworthy they are because they don’t check their records, and this can easily leave them open to identity theft or fraud.

Credit records can indicate that identities have been stolen or even “married”, which people often only discover when applying for credit.

Only 698 615 of the 22.84 million credit active consumers checked their credit reports in 2014. Deputy Credit Ombudsman Reana Steyn said the records also reflects your marital status.

“Should your marital status be reflected incorrectly you may approach the bureau to rectify this. Consumers are extremely concerned when they find that fraudulent accounts have been opened in their names or they find that enquiries have been done without their consent,” she said.

Where information on the consumer’s profile is incorrect, they can lodge a dispute to the bureau, who will investigate and resolve the dispute within 20 days.

Credit Ombudsman Nicky Lala Mohan said consumers need to be informed that the moment they enter into any credit agreement, their personal details and payment behaviour is captured and stored. This information is provided to entities like credit providers, cellular service providers or even prospective employers, said Mohan.

Mohan has observed that many consumers do not know the role of credit bureaus.

Consumers are also not often aware that their negative credit records will still appear on their profiles for five years after they have paid up their accounts.

One of the best ways consumers can take charge of their finances is to obtain a report from the major credit bureaus.

“Every consumer is entitled by law to one free report from each bureau each year. You also need to assess whether all the information on those reports are accurate. If not, the law provides the consumer with the right to dispute the inaccurate information,” said Mohan.

But you can improve your credit record if you pay everything on time as per the agreements. Over time you can always change your report to only reflect positive information.

“Paid-up defaults and judgments will be removed from your credit record. Make sure this is done by obtaining a report shortly after making the full payments. If it still reflects, lodge a complaint with the relevant bureau immediately,” he said.

Every consumer has the right to one free credit report from TransUnion (ITC), Experian, XDS and Compuscan. nicolette.dirk@inl.co.za

@ladynikki2