Unlock financial freedom by understanding your credit rights

Are you taking control of your financial future or do lenders and credit providers know more about your financial habits than you? Do you know how to challenge inaccuracies on your personal credit report?

As South Africa commemorates Human Rights Month, are you aware that access to fair credit is also a matter of human dignity?

This month, as we reflect on the fundamental rights enshrined in our Constitution, it's crucial to recognise that financial well-being and access to fair credit are intertwined with human dignity.

The National Credit Act (NCA) is a cornerstone of consumer protection in South Africa, designed to ensure fairness and transparency in the credit industry. It empowers consumers and sets clear guidelines for credit providers. Understanding your rights under the NCA is essential for building a secure financial future.

Your right to information
One of the most important rights is access to your credit information. The good news is that you can access your credit score and credit report anytime you want, completely free of charge. Platforms like Up powered by Experian provide you with instant access to your full credit information, enabling you to stay informed about your financial standing.

The right to object to inaccurate information
If you find any inaccuracies in your credit report, you have the right to dispute the data directly with the credit provider or with a credit bureau. The bureau is obligated to investigate the disputed information at no cost to you. They will contact the credit provider for evidence to support the data. If the credit bureau doesn't receive credible evidence within 20 business days, the objection will be resolved in your favour, and the incorrect information will be updated or removed.

Your responsibilities as a credit consumer
While the NCA protects your rights, it also emphasises responsible credit behaviour. This includes knowing your financial situation, spending less than you earn, setting realistic financial goals and paying your financial commitments on time.

Access to credit plays a vital role in economic growth, particularly in developing countries like South Africa. Credit bureaus help facilitate access to credit by providing lenders with the information they need to assess the risk of non-payment and make informed lending decisions.

“Experian is working to contribute to societal change by driving a more inclusive credit economy. We're developing social innovation products and initiatives to make a positive impact in communities and people’s lives. When people have fair access to credit, they can borrow money without being exploited by unfair lending practices. This allows them to improve their lives, whether through education, starting a business or buying a home. Denying fair credit access can limit their opportunities, which can be seen as a violation of their rights as human beings,” says Ans Gerber, Head of Data Insights at Experian.

“We are focused on using technology and alternative data to drive progress, with a particular emphasis on creating fairer and more affordable access to credit and helping to improve financial health. Platforms like Up are one way we're trying to provide consumers with the tools they need to manage their credit effectively.”

Financial freedom may seem distant, but it's achievable with planning and discipline
Start by understanding your credit rights and responsibilities. Access your free credit report regularly, review it carefully, and take steps to improve your financial well-being. By exercising your rights and embracing responsible credit habits, you can build a brighter financial future and contribute to a more just and equitable society.