Consumers keeping better tabs on their credit records

South African consumers are becoming more aware of how their credit histories are recorded and used and as a result they are demanding more feedback on how best to control and manage their finances.

Michelle Beetar, managing director of reference agency Experian SA, says this increase in consumer consciousness is one of the main reasons for the rapid growth in demand for her group’s services in the recent past.

“Experian SA operates huge and comprehensive databases and holds the credit application and repayment histories of millions of consumers.”

Experian acts as more than a credit bureau, says Beetar. A credit bureau, she says, is defined as a database of information supplied by lenders and public-record data sourced from third parties. Lenders and other subscribing members submit credit application and repayment data on consumers and businesses.

“Experian then augments this data with publicly available information. It is then aggregated, cleansed and sorted to form a credit report which comprehensively shows how consumer and business credit obligations have been fulfilled in the past.

“The result is a complete picture of indebtedness and credit payment behaviour.”

Beetar advises consumers to familiarise themselves with these procedures to create for themselves an impeccable credit record; one that will serve them in good stead when they submit credit applications to their chosen vendors or when those vendors institute credit data enquiries.

The credit reports generated by organisations like Experian include:

• identification information;
• past and present credit obligations;
• court judgements;
• Sequestrations and Administration Orders;
• suspected fraudulent applications;
• collections data; and
• previous addresses.

“Credit reports help lenders make better informed and faster credit decisions through access to detailed historical information and how consumers have managed their credit obligations,” Beetar explains.

She says Experian also provides credit monitoring and other information services directly to consumers via the internet – a service that enables consumers to monitor the accuracy of their credit record and to protect against identity theft.