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Understanding my credit report
What is a credit report and why is it important?
Your credit report shows how you’ve managed debt over time. Lenders, landlords, and others may use your report and credit score to decide whether to approve your credit or tenancy applications and (if applicable) at what interest rate.
Where does this credit report come from?
The reports are generated by VCCB, a registered Credit Bureau in South Africa.
How often is my credit report updated?
Your credit report is updated every 30 days and will reflect updates based on your borrowing and repayment history.
Why is my credit score different from other places I’ve checked?
"Different credit bureaus and credit providers use different scoring models, so your credit score may vary depending on where you check it. However, they generally use the same underlying information, so your scores should fall within a similar range.
We get your credit score and report from VCCB, one of the main credit bureaus in South Africa. VCCB uses your most up-to-date information to calculate your score."
What information is included in my credit report?
Your credit report includes personal details, your credit account history, enquiries from lenders, records of bankruptcies, and any accounts due for collectiona. This information is required by law to be updated by both your lenders and credit bureau and helps calculate your credit score. While each bureau (like Experian, Equifax, and TransUnion) may present it differently, they all report the same key categories.
How is my credit score calculated?
Your credit score is based on your payment history, how much credit you use, the length of your credit history, the types of credit you have, and recent credit applications. Paying on time and using less of your available credit will improve your score.
What does a “good” or “bad” credit score look like?
"Your payment behaviours influence these scores both positively and negatively. Lenders view or use these risk bands according to their risk appetite and this does not mean they would not grant you credit if you are in a category that is not favourable. It is, however, prudent to ensure your score is not on the low end of the bands by paying your debt on time and in full when required or as you have committed to do. According to VCCB, this is what your score indicates on your credit report:
- Very high score 901 - 1000
- High score 876 - 900
- Medium Low score 851 - 875
- Medium score 801 - 850
- Medium high score 751 - 800
- Low score 601 - 750
- Very low score 3 - 600"
Will checking my credit report here affect my score?
No, checking your credit score will not reduce or improve your score. However, being aware of your credit score will start to drive good behaviour that will most likely improve your credit score over time.
How can I improve my credit score?
"To improve your score:
– Pay all your accounts on time, every month.
– Respond to credit providers or debt collectors and keep up with payment agreements.
– Only apply for credit you can afford to repay.
– Pay the full instalment due each month, not just a portion.
– Provide accurate, up-to-date information when applying for credit.
– Never ignore legal notices like a summons, speak to an attorney and make arrangements as soon as possible."
What are the most common things that lower a credit score?
The most common things that can negatively impact your credit score generally revolve around your payment history and how much credit you're using. Late or missed payments are a major red flag for lenders, as they suggest you might be a higher risk. High credit utilisation, meaning you're using a large percentage of your available credit, can also lower your score because it indicates a reliance on debt. Additionally, filing for insolvency, having accounts sent to collection agencies, or a high number of applications for new credit can all significantly lower your score.
Can paying off my loan help my score go up?
Paying off a loan, especially an installment loan like a car loan or mortgage, can positively impact your credit score in several ways. Firstly, successfully completing payments on time for the duration of the loan demonstrates responsible credit management, which strengthens your payment history, a significant factor in your score. Secondly, if paying off the loan reduces your overall debt, it can lower your debt-to-income ratio, which lenders view favorably. Finally, once the loan is paid off, it frees up your available credit and can improve your credit utilization, both of which are beneficial for your score.
Issues or errors with my Credit Report
I see something wrong on my credit report, what can I do?
"If any of the information contained within your report is incorrect, you may lodge a free
dispute with VCCB by following the instructions on their website at www.vccb.co.za."
How long do missed payments or defaults stay on my credit report?
Missed payments and defaults can stay on your credit report for varying periods, significantly impacting your credit score. A regular missed or late payment will typically remain on your report for up to 5 years. However, the impact lessens over time if you maintain good payment habits thereafter. Defaults, which are more serious and often involve enforcement action like an account being handed over for collections or written off, generally remain on your credit report for 1 years. Court judgments, being the most severe, can stay on your report for 5 years or until they are rescinded by a court or paid in full. Even if you pay off the outstanding amount, the record of the missed payment will still reflect on your report for its prescribed retention period. Default information will be removed if the outstanding amount is settled or after 1 year.
What if I don’t have a credit history yet, what will my report show?
Depending on the up to date information we are able to retrieve, there may only be limited information available to display until you have more open credit accounts or a longer credit history.
Financial Courses FAQs
Are the courses free to take?
Yes, the courses are free to take. In order to save your progess, you will be required to create a Money Academy account.
How long is each course? Can I do it in my own time?
The courses are all self paced and can be completed in your own time. There are 4 different financial pillars namely, budgeting, debt, savings & investment.
Do I need to complete the courses in a specific order?
No, you are able to decide in which order you would like to complete the courses.
Can I go back and rewatch or retake a course?
Yes, you are able to rewatch any course content.
Will I get a certificate or proof of completion?
There is no cerfiticate issued when completing the Money Academy courses - they are here to support you during your journey to own your money.
How/Can these courses help me get a better loan or qualify for credit?
While completing the Money Academy courses won't directly improve your credit score or improve your chances of securing a loan, they do contain knowledge that can help you achieve both.
Will improving my financial knowledge actually improve my credit score?
That's up to you. Improving your financial knowledge can help your credit score if you action your learnings and manage your credit use responsibly.
Is there a way to track my progress through the Money Academy?
Yes, you are able to see how far along you have progressed in each individual course as well as see your overall progress for all courses.
Are these courses based on South African financial systems and laws?
Yes, they are based on South African financial laws but please note that the information contained within the Money Academy is intended to serve as a guide, and should not be seen as tailored financial advice. We recommend consulting a licensed financial advisor when considering your own financial needs and plans.
How do I receive my giveaway cash back prize if I win?
A randomised winner will be picked quarterly - if you're a lucky winner, we'll reach out to you via your registered cellphone number and email address. You will need to supply a proof of bank account to us, after which we will make payment into your chosen account within 30 days.
Terms & conditions apply
Need more help? Contact us [email protected]
Disclaimer
The information contained within the Money Academy is intended to serve as a guide, and should not be seen as tailored financial advice. We recommend consulting a licensed financial advisor when considering yur own financial needs and plans.
VCCB is the provider of the credit report data