BE MORE CREDIT-SAVVY
Many South Africans are suffering financially as a result of poor credit use. Garnet Jensen, senior director for TransUnion, offers information on the current state of South Africans’ credit and how to improve your financial wellbeing.
MORE PEOPLE ARE STRUGGLING TO PAY THEIR BILLS. According to Garnet, TransUnion’s quarterly Consumer Credit Index (CCI) declined significantly in the second quarter, showing that the number of accounts at least three months in arrears rose from around 906 000 to 919 000 between the second quarter of 2017 and the second quarter of 2018.
CREDIT REMAINS IN HIGH DEMAND. According to the National Credit Regulator’s (NCR) Consumer Credit Market Report, the total value of new credit granted increased from R121.62 billion to R131.65 billion for the quarter ending June 2018, an increase of 8.25% from the previous quarter. The number of applications for credit increased from 10.49 million to 11.10 million in June 2018, and more than half were rejected.
PEOPLE AREN’T CHECKING THEIR CREDIT REPORTS. According to the NCR’s Credit Bureau Monitor, the number of credit reports issued to consumers decreased from 196 920 in the previous quarter to 174 378. The accuracy of the information contained in your credit report is critical for the long-term health of your credit record. TransUnion advises consumers to check their