The words “credit bureau” come up whenever you apply for a loan, a phone contract or a home. Few people know what the bureau actually holds, who sees it or what rights they have.
This guide explains how a credit bureau works in South Africa in plain terms.
What is a credit bureau?
A credit bureau is a business, registered with the National Credit Regulator (NCR), that collects and stores credit information about consumers. It does not lend money and it does not decide whether you get a loan. It gives lenders a record that helps them decide.
The main bureaus are TransUnion, Experian and XDS. Compuscan, once a separate bureau, has been part of Experian since 2019, and the Consumer Profile Bureau also operates. The NCR publishes the register of credit bureaus.
How does information get to a credit bureau?
You do not send it. The flow goes like this:
- You open an account, such as a loan, card, store account or phone contract.
- The credit provider reports the account and your payments to one or more bureaus.
- The bureau builds your record from those reports.
- A lender you apply to asks the bureau for your record.
Not every lender reports to every bureau. That is one reason the record at one bureau can differ from another.
What does a credit bureau hold about you?
| Type of information | Examples |
|---|---|
| Identity | Name, ID number, addresses, employer |
| Accounts | Loans, cards, store accounts, balances, limits |
| Payment history | On-time, late and missed payments |
| Enquiries | Which businesses checked your record, and when |
| Adverse information | Defaults, debt review status |
Each type has a maximum retention period set in the National Credit Regulations. Enquiries, for example, can stay for up to a year, and payment history for up to five.
Who can see your record?
Only businesses with a permitted purpose. A lender assessing a loan application can. A landlord or employer may be able to in limited situations, with your consent.
A random person cannot. The rules come from the National Credit Act and the Protection of Personal Information Act.
What are your 4 rights over your record?
- Access. You can get a free report once every 12 months from each bureau. See free credit reports.
- Correction. You can dispute information you believe is wrong. See credit report disputes.
- Privacy. Your information may only be used for permitted purposes.
- Complaint. If a bureau does not act, you can use the Credit Ombud.
How does a credit bureau relate to your credit score?
The score is a calculation based on the record. Each bureau uses its own model and its own data, so your scores differ between bureaus. Lenders may use scores from one or more of them, along with their own rules. See how credit scoring works.
How can you keep your record healthy?
- Pay accounts on time. Missed payments are the biggest negative.
- Keep balances low compared with limits.
- Avoid applying for many accounts at once.
- Review your report each year and dispute errors.
- Tell the lender when your details change, such as your address or employer.
A single wrong entry, such as an account that is not yours, can lower your score. Checking each year catches it early.
What about “blacklisting”?
South Africa has no official blacklist. There is only the record held by the bureaus, and each lender decides what weight to give it. Read blacklisted: what it really means for more.
What happens when a lender checks your record?
When you apply for credit, the lender usually asks a credit bureau for your record. That request is called an enquiry, and it is recorded. You can see it later on your own report.
A few things follow from this:
- A lender needs a permitted reason, such as assessing your application.
- Each enquiry can stay on your record for up to a year.
- Several enquiries in a short time can look like you are looking for credit everywhere.
- Checking your own report is different. It is not a lender enquiry and does not count against you.
That is why it is better to apply carefully to one or two lenders than to send ten applications in a week.
What does a credit bureau not hold?
People often assume the bureau knows everything about their money. It does not. A bureau holds credit information reported by credit providers. It does not hold:
- Your bank balances or savings.
- What you buy with cash or by card.
- Money you pay informally, for example to a stokvel or a family member.
- Your medical history.
So a credit bureau cannot tell a lender how much you earn or how careful you are with cash. That is why lenders also ask for payslips or bank statements.
What kinds of record can a credit bureau hold?
Lenders talk about three kinds of file. They help to explain why two people with the same salary get different answers.
| File type | What it looks like |
|---|---|
| Thin file | Few or no accounts, so little to judge |
| Clean file | Accounts paid on time, no adverse listings |
| Damaged file | Defaults, missed payments or a debt review flag |
A thin file is not a bad file. It simply gives a lender less evidence, so it may offer a smaller amount to begin with. See building credit for how to add evidence safely.
Which myths about the credit bureau are worth ignoring?
| Myth | What is true |
|---|---|
| The bureau decides whether I get a loan | The lender decides. The bureau supplies the record |
| Checking my own report lowers my score | A request you make yourself is not a lender enquiry |
| I can pay the bureau to clean my record | Only wrong information must be corrected, and that is free |
| There is an official blacklist | There is only the record each bureau holds |
Who oversees the bureaus?
The National Credit Regulator registers credit bureaus and enforces the National Credit Act. The Information Regulator oversees how personal information is handled under the Protection of Personal Information Act, and you can contact it at inforegulator.org.za if you believe your data has been misused.
The Credit Ombud handles disputes about credit records.
Knowing which body deals with which problem saves time when something goes wrong.
Frequently asked questions
Is a credit bureau the same as the NCR?
No. The NCR is the regulator that registers bureaus and enforces the National Credit Act. Bureaus are businesses that hold records.
Do I have to tell the bureau about my loans?
No. Credit providers report. You do not need to supply the data.
Can a bureau delete my record on request?
Only inaccurate information must be corrected. Accurate information stays until its retention period ends.
Does every lender report to every bureau?
Not necessarily. That is one reason to check more than one bureau.
How many credit bureaus are there in South Africa?
Several are registered with the NCR, including TransUnion, Experian, XDS and the Consumer Profile Bureau. The NCR publishes the full register.
Does a credit bureau hold my salary?
No. It holds credit information reported by lenders, such as accounts and payments. Lenders ask for payslips or bank statements to see your income.
One free 5-minute form is sent to NCR-registered lenders. Each lender decides for itself and shows you the full cost before you sign.
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