Check record regularly to avoid negative listing

Most people now know that they can check their credit records at a credit bureau free of charge at least once a year.

So why don't more of us do this? Probably the same reason many don't go for HIV tests? in case they tell us something we'd rather not know.

The thing is, when it comes to your credit record, with all the fraud and sloppy admin in the marketplace, even if you know you've been diligent about paying what you owe, there could be a negative listing attached to your name that could hamper or destroy your chances of getting any further credit - or even, as I reported last week, a job.

Take Busisiwe Ngwenya's story.

In April, she filled in an application form to open an account at QueensPark in Brooklyn Mall and later learnt it was rejected.

The store manager was helpful in establishing why the application had been rejected, even calling the credit bureau TransUnion on Ngwenya's behalf.

It emerged that Absa's vehicle asset finance division had listed her for skipping payment in January last year.

She had indeed technically missed a payment at the time she sold her car, but her Absa account was in credit as she'd paid in extra; enough to cover three instalments.

She sorted out the matter with Absa in July, and received a letter from the bank stating that an instruction had been sent to the credit bureau "to delete one month arrears as the account was never in arrears. Account is (now) reflecting as early settlement status."

And she got the standard corporate apology "for the inconvenience".

Samuel Makhakhe did miss a payment on his Edgars account in February, two months after he opened the account.

"They called me to arrange a payment date, and I made the payment prior to the agreed date," he said. "There was no mention of the credit bureau."

He thought that was the end of the story, and has been paying his account on time every month.

A few months later he applied for car finance and was declined due to a negative credit bureau listing.

"I approached Edgars and all they gave me was a letter stating that my account is up to date, so I tried applying again and was declined a second time due to the same issue.

"I think you should advise the readers to check if they are listed in the credit bureau before applying for anything," Makhakhe said. "That's what I should have done."

Approached for comment, an Edgars spokesman said Makhakhe "did factually miss one payment on his Edgars account and this factual 'non-payment' information was sent through to the credit bureaux to update his credit record payment profile, as required by the National Credit Act".

Caroline Buthelezi of the Credit Ombud's office confirmed that whenever a consumer didn't pay according to the agreement, that must reflect on the payment profile/history section of their credit report.

"But it is highly unlikely that one would be declined credit on the basis of just one missed payment," she said.

"I advise Mr Makhakhe to call the credit bureau, request his credit profile and investigate whether there is any information other than the non-payment to Edgars which might have contributed to the decline."

He did that, and was told that his credit record was "clear".

"Ironically, what could affect me now is the fact that I have applied for vehicle finance a couple of times, which affects my credit scoring."

Bottom line - every time you "short pay" an instalment, or pay it later than the due date, even by just one day, it's going to reflect on your credit record.