I know some companies and individuals are going to have a go at me for what I am about to write next – but it is what it is.
Any company that says they can “quickly get you off the blacklist or fix your credit score” and then charge an upfront fee to do so, is doing so illegally.
They are downright skelm!
You don’t have to take my word for it. This is documented in Schedule 1 of the Consumer Protection Act, as well as the National Credit Act.
According to Annelene Dippenaar, chief legal and compliance officer at Experian South Africa, you must be cautious of businesses that claim they can improve or fix your credit score overnight, especially for an upfront fee.
Dippenaar points out that scams can take many different forms, from simple emails or SMSes to advertisements.
While this is not an extensive list, she highlights the following further signs that opportunists may be trying to scam you:
They promise overnight credit report repair and score improvement. Credit scores take time to change and they usually don’t show improvements within a few days or weeks.
They promise to remove information that is inaccurate. Information that is inaccurate, for example, due to error or fraudulent activity on your name, can be removed after a dispute or investigation process, which is offered for free by a bureau. No one other than a bureau can remove information, and they will not remove information that is accurate and current.
They discourage you from contacting the bureaus on your own to resolve the issue. They do not explain the process, the role that they will play, and the benefits to you. They do not explain that there is a free process available.
They recommend you dispute your credit report information without having seen your credit information or verifying the validity of this data with your credit providers.
Dippenaar says that all credit bureaus offer a free credit information dispute process.
The first step is getting a copy of your report. You should check the information in your report.
If there is any incorrect information, you should contact the bureaus directly to dispute it.
When contacting a bureau, you should supply the following documentation:
Copy of your ID document (or passport if you’re a foreign national);
Proof of address (not older than three months);
Any supporting documentation of the dispute (such as a settlement letter).
The credit bureaus will then investigate the dispute with the data provider, and this investigation can take up to 20 business days.
“It’s important to note that even if a credit repair agent helps you fix your credit report, they would need to follow the same process, supply the same documentation, and take the same amount of time – there is no special process for credit repair agencies,” says Dippenaar.
“A credit bureau will only change your profile upon receiving confirmation from an information provider that the change should be made, or if the credit provider cannot provide evidence that the data on your report is accurate.
“If the dispute is successful, the credit bureau will notify all other registered credit bureaus of the outcome, and the other bureaus will also update the data on your profile held by them,” she adds.
Don’t waste your money I am specifically writing this article now, because I don’t want anyone to give their hard-earned, year-end bonuses – in the false hope of having their credit records “fixed”. Times are tough, no one needs to be wasting money on scams and skelms.
Importance of your credit score If you think that your credit score is just a number at a credit bureau which carries no weight in how institutions or organisations view you – you could not be more wrong! Your credit score could be the reason you are being declined for a vehicle, home loan or any other type of credit.
The information in your credit report (including your credit score) as well as your employment history, your income and affordability assessment, along with the type of credit for which you are applying, will affect the outcome of your credit application.
Your credit score is calculated using a formula that evaluates how well, or badly you pay your bills, how much debt you carry, and how all of this stacks up against other borrowers.
In the end, a single number tells you what your credit report says about how you manage your debt. In a nutshell, a credit score is a number that evaluates your creditworthiness and is based on your credit history. The higher the score, the more financially trustworthy a person is considered to be. Scores range from 0 to 999 or from poor to excellent.
EXCELLENT: 767 – 999
GOOD: 681 – 766
FAVOURABLE: 614 – 680
AVERAGE: 583 – 613
BELOW AVERAGE: 527 – 582
UNFAVOURABLE: 487 – 526
POOR: 0 – 486
For a free personal credit report, go to either one of these credit bureaus: