What is a credit report?
A credit report is a detailed overview of your credit history compiled by a credit bureau. For you, it’s a good way to monitor your financial health to ensure you’re on the right track. It's especially good to check ahead of applying for credit. For a credit lender, it is used to assess your risk profile and credit worthiness.
Read: Here's how you get approved for a personal loan
What is a credit bureau?
A credit bureau is a company that collects data based on your credit history and accounts. In South Africa, there are 4 main credit bureaus:
- Experian
- TransUnion
- XDS (Xpert Decision Systems)
- Compuscan (now owned by Experian)
At Meerkat, we give our clients access to a FREE credit report compiled by Experian. Experian is a trusted credit bureau who have been in existence for more than 125 years.
All credit bureaus should be registered with The National Credit Regulator (NCR). Here is a list of all registered credit bureaus. According to the website, there are a total of 53 credit bureaus registered in South Africa.
How do I check all my debts?
You can use a credit report to check all your accounts or debts. A credit report should also give you information concerning:
- Your credit score
- A record of your payment of those debts (your payment history)
- Previous loan enquiries/ applications
- Credit limits
- Detailed overview of your accounts or debts (for example, credit cards, store/retail accounts, home loans etc)
- If you have any accounts that have been handed over for collection and any judgements that are against you
Moku insight: Credit reports will reveal slightly different information based on the credit bureau you request the report from. The reason for this is that not all credit lenders report the same information to all consumer reporting agencies (CRAs). CRAs here are companies such as Experian and TransUnion.
Credit score explained according to Experian’s scoring system
Individuals with a very high score are seen as a high credit risk for credit lenders or banks. If you have a very high score, this will work against you and your loan application may be rejected.
500 - 594 very high
595 - 610 high
611 - 628 average
629 - 659 low
660 - 750 minimum
Below is an image of an example of what your credit score could look like in your credit report
What’s a good credit score in South Africa?
A good credit score will depend on the credit bureau you are requesting information from. Different lenders and banks usually request credit reports from different and multiple credit bureaus. According to Experian’s credit scoring system, a good credit score would be anything from the average score (611-628) to the minimum (660-750).
It’s definitely in your best interest to regularly check your credit record (credit report). This will help you give you an idea of your risk profile according to banks and credit lenders.
Get your FREE credit score in South Africa.
