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SUB CATEGORIES Credit Bureaus  |  Credit Insurance |  General | 

NCR Research Indicate that a Full Credit Check is Vital

30 July 2010 Compuscan

According to the Credit Bureau Monitor Research Report of March 2010 the percentage of consumers with impaired records increased to 46.0%. This clearly indicates how essential it is for all credit providers to carry out a full credit check on all their cr

According to the Credit Bureau Monitor Research Report of March 2010 the percentage of consumers in good standing continue to decline. This is an indication that debt stress levels are still high. The percentage of consumers with impaired records increased to 46.0% from 45.3% in the last quarter – comprising 17.2% of consumers in 3-plus months in arrears, 15.0% of consumers with adverse listings, and 13.7% of consumers with judgments and administration orders. Econometrix, a specialized consultancy firm providing quantitative economic analysis and modelling for business decisions also highlighted that, “Growth in consumers with impaired records remained concerning at 12.2% y/y in the first quarter of 2010, which is marginally higher than 12.1% y/y in the previous or fourth quarter of 2009, with judgments and adverse listings absorbing much of the rise. The above suggests that household balance sheets remain under strain despite the economy’s recovery from the recession.” Based on the above research it is apparent how essential it is for all credit providers to carry out a full credit check on all credit applicants. This includes looking at judgments, admin orders, collections, defaults / adverse information and debt restructuring information. The more data on a credit report, the better the view on an applicant. If you are currently only making use of the National Loans Register (NLR), Compuscan urges you to rethink the use of our other data offerings. We collect public domain information from over 500 courts throughout South Africa and detailed adverse / default information from the Credit Providers Association (CPA), subsequently ensuring that you know exactly who you are dealing with when you extend credit.

For a copy of the NCR’s Credit Bureau Monitor March 2010 Report, please click here

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