Credit profiles and black listing

What Is a Credit Profile?

Your credit profile contains your personal details, as reported to the credit reporting agencies by lenders that have given you credit. It records your credit history such as what types of credit you use, how long you have had open accounts and whether you have paid your bills on time. Its aim is to predict how likely you are to honour your credit commitments in future. the creditor will check your profile and decide whether to give you credit based on the information they receive from the credit bureau.

If you have a bad credit history, it impacts on your credit profile for years to come. Different credit problems are kept on record for different lengths of time:

• Liquidations & sequestrations - ten years
• Court judgments against you - five years
• Negative records (eg unpaid accounts) - three years
• Collection records and administration orders - until the debt is settled.

When you apply for credit, the creditor will check your credit rating with the credit bureau, and if you have a bad credit history, they will refuse to give you credit. This is referred to as "black listing".

You can get your credit profiles from the major credit bureaus for a fee (the fees depend on the information you are requesting). The credit bureau will provide information about your credit rating, and what steps you can take to improve your rating.

There are two major credit bureaus in South Africa:

Trans Union
Tel: 021 401 4200
www.transunionitc.co.za

And

Experian
Tel: 0861 10 56 65
www.experian.co.za