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Credit 101: How to Get Your Free Credit Report in South Africa

Even though you can request a free credit report in South Africa, only 3% of the country’s 24 million borrowers have checked theirs.

Additionally, 56% of South African borrowers are considered high or very-high risk borrowers.

These numbers show that borrowers aren’t taking advantage of the information available to them, and this could be holding them back financially.

The information on your credit report can determine your approval and interest rates for a loan, so don’t you want to know what’s on yours?

Continue reading to learn how to get your free credit check online.

What is a Credit Report?

You are probably familiar with what a credit score is, but your credit report is a bit more in-depth.

Your credit report is an overview of your credit and borrowing history. Lenders use this report to determine if you are likely to pay back your loan (low-risk) or not (high-risk).

The main factors included in your credit report are:

  • Financial history
  • Amounts owed
  • Account ages
  • Late payments & defaults
  • Requests for new credit

Practicing good habits like making payments on time and not carrying large credit card balances will help lenders view you as a low-risk borrower.

Why Your Credit Report Matters

Most South African borrowers have never looked at their credit report, even though a credit check online is free.

Your credit report is used in many important financial decisions. If you are trying to buy a house, apply for a car loan, or open a credit card, your lender will look at your credit report.

A bad credit report can result in higher interest rates or not being able to get a loan at all. Even if your credit score is okay, a negative item on your report could make a lender decide not to approve your loan.

By checking your credit report, you are already a step ahead of most borrowers!

Getting Your Free Credit Report in South Africa

As a South African citizen, you are entitled to one free credit report each year. You can perform this credit check with any of the four credit bureaus.

The four South African credit bureaus are Experian, TransUnion, XDS, and CompuScan.

While you only get one free credit check online per year, you can request reports from the other bureaus for a small fee.

These reports can have slightly different information. It’s smart to rotate your yearly free credit check online for the most accurate credit report.

Maintaining Good Credit

Part of being a responsible borrower is ensuring that your credit report is accurate. Since you’re entitled to a yearly free credit report in South Africa, you should take advantage of this to monitor your report.

You should also check your credit report for fraudulent information. This information could be hurting your credit score and preventing you from getting the loan you deserve.

With a healthy credit report, you can rest easy knowing you have the financial freedom to borrow money when you need it most.

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