WHAT IS A CREDIT BUREAU?
According to Section 70 of the National Credit Act (NCA), a credit bureau is an organization that collects, compiles, and reports consumer credit information from credit providers for credit scoring or assessment purposes.
What Does a Credit Bureau Do?
When you apply for credit, the credit provider will request your credit information from a credit bureau. The bureau provides a credit report to help the credit provider draw up your credit score. Credit providers use these scores to assess the risk of lending to you.
What Information Does a Credit Bureau Keep?
A credit bureau may receive the following information about you:
- Payment history and status
- Information relevant for credit fraud detection and prevention
- Payment history of debts sold or ceded to third parties
- Information not intended for providing consumer credit
You have the right to access and challenge the credit records and information kept by the credit bureau.
Learn more about how to improve your credit scores and understand the risks of a poor credit score.
How Long Does a Credit Bureau Keep Your Information?
The NCA sets maximum periods for how long consumer credit information can be recorded on your credit record. Here are the retention periods:
Category | Description | Maximum Period |
---|---|---|
Disputes | Number and nature of complaints lodged and whether they were rejected. No information on upheld complaints. | 6 months |
Enquiries | Number of enquiries made on your record, including the name of the entity/person who made the enquiry. | 1 year |
Payment Profile | Factual information about your payment history. | 5 years |
Adverse Classifications of Consumer Behaviour | Subjective classifications of your behaviour. | 1 year or within 14 business days after settlement. |
Adverse Classifications of Enforcement Action | Related to enforcement action taken by the credit provider. | 1 year or within 14 business days after settlement. |
Debt Restructuring | As per section 86 of the Act, an order given by the Court or Tribunal. | Until a clearance certificate is issued. |
Civil-Court Judgments | Including default judgments. | The earlier of 5 years or until the judgment is rescinded or abandoned. |
Administration Orders | As per the court order. | 5 years |
Sequestration Orders | As per the court order. | 5 years or until a rehabilitation order is granted. |
Rehabilitation Orders | As per the court order. | 5 years |
Maintenance Judgments | As per the court judgment. | Until the judgment is rescinded. |
If you’re unsure about your information with credit bureaus, we can help in the following ways:
- Obtaining your credit reports
- Reviewing the information listed on your credit reports
- Negotiating repayments to settle outstanding debts and remove the information
- Identifying information that qualifies for removal
- Advising on how to remove information that doesn’t qualify for removal
Take back control of your finances?
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