There are many credit myths out there that can be confusing and misleading. Many believe that credit bureaus keep a list of individuals who do not pay their bills, or are too risky to grant credit to.
There are many credit myths out there that can be confusing and misleading. Many believe that credit bureaus keep a list of individuals who do not pay their bills, or are too risky to grant credit to.
This myth, many times referred to as a “blacklist” or “being listed” is simply false.
“Credit bureaus like TransUnion do not keep a blacklist of people who are accused of being bad payers; nor do credit bureaus tell credit providers like retail stores, cellphone companies or banks to whom they should or should not give credit,” said Tersia van Rooyen, manager at TransUnion South Africa responsible for consumer education.
TransUnion is one of South Africa’s leading credit bureaus.
“What credit bureaus do is maintain a database of credit-related information – good and bad – about every credit active consumer in the country,” van Rooyen continued.
The credit-related information is provided to the credit bureaus on a regular basis by institutions that provide credit.
The credit bureaus then compile the information into a Credit Report for each consumer. “If your behaviour is good and you pay the full amount owing on your accounts on time every month, this will be reflected in your Credit Report and it may help you to obtain more credit when you need it. But if your Credit Report shows that you don’t always pay what you owe each month, it may work against you.”
Van Rooyen pointed out that it is not the credit bureau that makes the decision whether or not to give or extend you credit.
In fact, it’s not even the credit bureau that decides what to include or exclude from your Credit Report.
That’s determined by the lenders and what they decide to report to the credit reporting company.
“While there is no such thing as a blacklist, your Credit Report is a very important document and you should check it regularly. The law states that every consumer is entitled to one free credit report from each of the credit bureaus, once every 12 months. We encourage all credit active South Africans to take advantage of this free service,” she added.
To get your free credit report from TransUnion, simply either phone the TransUnion call centre on 0861 482 482 and ask for it; or visit www.mytransunion.co.za.
