- Introduction to credit reporting
- Your rights
- Things to watch out for
- FAQs and other resources
- Resources for Customer Consultants
- About Credit Smart
FAQs and other resources
Case study 1 - Mary shops around for the best deal
During the past three months, Mary applied for four credit cards, two car loans and one loan to pay for home renovations. In the end, she decided to take up one credit card and a small loan for her renovations. She decided not to take out a car loan.
A licensed credit provider who is participating in comprehensive credit reporting might see that Mary has only taken out one credit card and a small loan, and has a satisfactory repayment history. If Mary applies for further credit, a credit provider will have a better picture of her current arrangements and can make a more accurate credit assessment.
Case study 2 – Charlie and an unfortunate default
Charlie always paid his bills on time and never defaulted on any loans. Unfortunately, he moved house and did not receive his credit card statement for three consecutive months, meaning he missed some payments leading to a default being listed on his credit report . Once he corrected his address details, he put the account back in order, and soon enough was once again paying all his bills on time.
The provider of Charlie’s credit card reports whether or not he pays his monthly repayments. This information is used in his credit report and other credit providers can see Charlie is making his monthly payments. They can also see that even though he was once late paying, he has paid on time since. Because they can see that he now pays on-time, they may be more willing to give him credit.
Case study 3 – Betty and the lost handbag
Betty was on holidays when she lost her handbag, which contained her wallet and all her identification and credit cards.
Betty immediately contacted all her credit providers and they blocked her cards from being used. She also contacted the major credit reporting bodies to see if anyone had tried to apply for credit in her name – her credit report shows details of any new applications.
Betty also asked the credit reporting bodies to put a ‘ban’ on her credit report for 21 days. During this time, credit providers who want to access her credit report as part of their credit application process must seek her written permission before they can see her report. This reduced the chances of the thief opening any credit accounts in Betty’s name.