The ABCs of clearing your credit record (Part 3)

If you’ve been keeping an eye on the blog over the past few weeks, you’ll have noticed that we are discussing where your credit record fits into the procedures South African financial institutions follow when determining whether you are a suitable candidate for credit or not. At Libertine Consultants, evaluating their credit report, is the most important starting point for each one of our clients – whether for a simple enquiry, a clearance issue or to determine if someone really needs debt review.

We really know our stuff when it comes to our clients' credit reports!

In previous articles, we discussed the role of credit bureaux in determining your overall credit score, and how a credit record differs from a credit report. Today we look at the main features of a good credit report.

date: 20/05/2018Author:

What is my credit score & does it matter?

Your credit score is the number a credit bureau allocates to your profile. Think of it in the same way as the grades you got in school. In school, a good grade meant you understood the course work and spent enough time studying. In life a good credit score means you have been managing your finances in a way that shows potential credit providers that you pay off your debt consistently.

Do credit providers look only at the credit score?

Each credit provider has its own inhouse system for calculating the consumer's risk profile. Your credit score is considered, but the following also influences their decision:

Your employment history

Your income & affordability assessments

The type of credit and how much you're applying for.

This, along with other aspects of your credit profile, ultimately determines whether they extend credit to you or not.

What is a good credit score?

Every credit bureau uses its own unique criteria and algorithms to calculate your credit score. Below is a summary of the scoring parameters for each of the 4 major credit bureaux in South Africa. The general rule of thumb is simply that higher (anything above 700) is good and lower (anything below 600) is poor:

TransUnion Credit Bureau (American based) GOOD = 918-999 POOR = 0-635

Experian Credit Bureau (European based) GOOD = 77-999 POOR = 0-486

Compuscan Credit Bureau (South African) GOOD = >667 POOR = <605

XDS Credit Bureau (South African) GOOD = >900 POOR = <560

It can sometimes happen that your credit record contains faulty or outdated information that is affecting your credit score negatively. With a negative/poor score you might find that your credit applications are consistently rejected. But, with the help of the experienced team at Libertine Consultants, this incorrect information can be disputed, the outdated information removed, and your credit score rehabilitated!

Your credit score restored

Now you know all about a good credit score!

Our next article will look more closely at what causes a low credit score and what you, the consumer, can do to improve your credit score.

In the meantime, contact a Libertine Consultants representative at any time with any questions you may have regarding our credit services. We're happy to provide any information you may need about your credit record and help you improve it to bolster your overall financial standing in South Africa!

Read more about credit bureaux in Part 1 and credit records in Part 2 of our 4 part series.

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