How to Read and Understand Your Credit Report (South Africa)

By / September 15, 2025

Your credit report is one of the most powerful documents in your financial life. Lenders use it to decide whether […]

How to Read and Understand Your Credit Report (South Africa)

Your credit report is one of the most powerful documents in your financial life. Lenders use it to decide whether to approve your applications for a home loan, vehicle finance, personal loans, credit cards, and store accounts. It also influences the interest rate and limit you receive. Yet many people only glance at it once a year, or avoid it entirely because it looks technical and full of jargon.

This guide explains, in plain language, how South African credit reports work, what each section means, how long information may stay on your profile, how to dispute errors effectively, and how to strengthen your score over time. It follows the National Credit Act framework and the rules that registered credit bureaux must follow. By the end, you will be able to read your report line by line, spot problems quickly, and take confident action.

What exactly is a credit report?

A credit report is a factual record of your credit history. It typically includes:

  • Personal details: Names, South African ID number, date of birth, past addresses, contact details, and sometimes employment information.
  • Account information: Every credit account reported in your name (for example, home loans, vehicle finance, personal loans, credit cards, store cards, telecommunications and utilities). Each account shows its type, credit limit or original amount, current balance, opening and closing dates, and the payment profile (a month-by-month record of whether instalments were paid on time).
  • Adverse information: Classifications such as “in arrears”, “default”, “handed over”, “legal”, or “write-off”, where applicable.
  • Public records: Civil court judgments, administration orders, sequestration and rehabilitation orders, and liquidations relevant to you as a consumer or director.
  • Debt review status: Whether you are under debt counselling and, if so, whether a clearance certificate has been issued.
  • Enquiries: A log of every time your credit record was accessed and by whom.
  • Credit score: A bureau-specific number, often on a 0–999 scale, summarising risk. Higher is better.

Your report will never include sensitive personal attributes such as race, religion, political affiliation, health status, sexual orientation, or trade-union membership. If you ever see such content, you should dispute it immediately.

Where to get your report and how often to check it

South Africans are entitled to at least one free credit report every 12 months from each registered credit bureau. The major consumer bureaux include TransUnion, Experian, XDS, and TPN, among others. Because bureaux may hold slightly different data, it is sensible to request a report from each of the major bureaux over the course of a year. A simple method is to stagger them quarterly so you always have a relatively recent view.

If you need more than one report within the same year from the same bureau, a small fee may apply. You can also subscribe to ongoing monitoring, but it is not a requirement. The key is to build a routine: check your profile, fix errors quickly, and track your progress.

How long information stays on your report (retention periods)

South African regulations prescribe maximum display periods for different data categories. The following table summarises the most important ones.

Data itemMaximum retention period on your report
Enquiries2 years
Payment profile (month-by-month account history)5 years
Adverse classifications (for example, default, slow payer, handed over)1 year
Debt review flagUntil a clearance certificate is issued
Civil court judgmentsEarlier of 5 years or until rescinded or abandoned
Administration ordersEarlier of 10 years or until rescinded
SequestrationEarlier of 10 years or until a rehabilitation order is granted
Rehabilitation orders5 years
Liquidations (juristic persons)As ordered by court or as prescribed

When a defaulted account is paid up, the provider must notify the bureau, and the bureau must update your record timeously in line with the regulations. Paid-up civil judgments must be removed in accordance with the 2014 policy on removal of adverse information and information relating to paid-up judgments.

A step-by-step walkthrough of your report

1) Verify your identity section

Make sure your names, ID number, date of birth, addresses, phone numbers, and employment details are correct. Errors here can cause mis-matches that attach other people’s data to your file or lead to unnecessary declines because your details cannot be verified.

Red flags to watch for:

  • Addresses you have never used.
  • Phone numbers or employer details you do not recognise.
  • Sudden, repeated changes you did not initiate.

If you spot a problem, lodge a dispute with the relevant bureau immediately. Bureaux must investigate within a defined timeline, and disputed entries are masked from lender view during the investigation.

2) Understand the accounts and payment profile

Each account displays:

  • Type (for example, credit card, personal loan, vehicle finance).
  • Limit or original amount, current balance, and status (current or in arrears).
  • Opened and closed dates.
  • Payment profile grid: a line of month codes showing whether you paid on time, paid late (for example, 30/60/90+ days past due), or the account was handed over or written off.

Two signals matter greatly to lenders:

  • On-time payment history. A single 30-day late payment can dent your score and trigger higher interest rates for months.
  • Credit utilisation. For revolving credit such as credit cards, this is your balance as a percentage of your limit. Lower utilisation is a strong positive signal. Many lenders prefer to see utilisation well below 50% both per card and across all cards combined.

Practical improvements:

  • Align debit orders with payday and keep a modest buffer in your current account.
  • Make additional payments to bring balances down. If high limits tempt overspending, consider a voluntary limit decrease.

3) Review adverse information and collections

Look for labels such as default, handed over, legal, or write-off. Data providers must give you proper notice before adverse classifications are reported. If you have settled a defaulted account, ensure that it shows as paid up. If it does not, send proof of payment to both the provider and the bureau and request an urgent correction.

4) Scan the public records section

Public-record entries can be severe risk signals for lenders:

  • Civil judgments usually relate to unpaid debts that have been confirmed by a court.
  • Administration orders indicate court-supervised debt management.
  • Sequestration and rehabilitation show insolvency proceedings and their outcomes.

If a judgment has been rescinded or abandoned, or you have been rehabilitated, supply the court order to each bureau and request removal in line with the retention rules.

5) Note any debt review status

If you are under debt review, your report will display a flag, and lenders generally will not extend new credit until it is removed. Once you complete your rearrangement order and your debt counsellor issues a clearance certificate, the bureaux must update your profile to remove the flag. Keep copies of all correspondence.

6) Inspect the enquiries list

Your report tracks who accessed your credit file and when. Enquiries remain for two years. Many lenders distinguish between:

  • Hard enquiries: Triggered when you apply for new credit. These may influence your score for a period.
  • Soft enquiries: Occur when you view your own report or when a provider conducts an account review. These do not affect your score.

A cluster of hard enquiries in a short time can signal risk. If you see enquiries from companies you do not recognise, you should investigate promptly in case of impersonation.

How South African credit scores work

There is no single national credit score. Each bureau uses its own data and model. In South Africa, several consumer scores are expressed on a 0–999 scale, where higher is better. Because bureaux have different inputs and modelling techniques, the number you see on one platform may differ from another. In addition, your bank or lender may overlay bureau data with its own internal scorecards, affordability checks, and policy rules.

What influences your score most:

  • Payment history: Paying every account on time is the most powerful habit.
  • Credit utilisation: Lower balances relative to limits are better.
  • Length of history: Older, well-managed accounts help more than newer ones.
  • Credit mix: A healthy blend of instalment accounts and revolving credit helps signal stability.
  • New credit: Many recent hard enquiries and newly opened accounts can depress your score temporarily.

The healthiest approach is to optimise the behaviours that every model rewards rather than chasing a specific number.

How to dispute errors and fix your report

You have the right to dispute incorrect, unfair, or outdated information free of charge. The bureau must investigate within a defined period, generally up to 20 business days. During the investigation, the disputed entry is masked from view. If the data provider cannot supply credible evidence that the entry is correct, the bureau must correct or remove it.

Exact steps to follow:

  1. Collect evidence: Contracts, statements, settlement letters, payment confirmations, court orders, or an affidavit for fraud cases.
  2. File a dispute with each bureau that shows the error. Record your reference numbers.
  3. Co-operate with the investigation: Respond to requests from the bureau. Keep copies of everything.
  4. Receive the outcome in writing: Bureaux must advise you of the result and amend your profile where required.
  5. Escalate if needed: If you disagree with the outcome, you may escalate to the appropriate ombud for credit-information disputes or to the National Credit Regulator for certain flags such as debt review status.

Time-saving tip: When you clear a judgment or default, request a letter from the creditor or the court order that proves the change. Send it to all bureaux at once to speed up removal across the board.

Identity theft and fraud: what to do

Warning signs include unfamiliar enquiries, accounts you did not open, billing statements for services you never used, or collection calls for debts you do not recognise.

Immediate actions:

  • Report the fraud to the credit provider and obtain a case number.
  • Dispute the entries with every bureau that displays the fraudulent data.
  • Consider Protective Registration with the South African Fraud Prevention Services (SAFPS). This service flags your ID, prompting extra verification by credit providers before approving applications in your name.

Keep a simple file containing your affidavits, case numbers, emails, and reference numbers. This saves hours if you need to escalate.

A 90-day action plan to strengthen your profile

  • Pay on time. Set automated payments and calendar reminders. If a debit order returns, make the payment the same day and contact the provider to prevent a negative status code.
  • Lower your utilisation. Target an aggregate utilisation well below 50% and, ideally, under 30% on each revolving account. Extra payments are more effective than closing accounts.
  • Avoid unnecessary applications. If you must apply to several providers, do it in a short window and stop once you receive a suitable approval.
  • Keep your oldest good account open. The length of history matters; a long-standing, well-managed card is an asset.
  • Fix errors fast. Dispute wrong addresses, enquiries you did not authorise, duplicated accounts, or outdated adverse listings.
  • Clear legal items properly. Keep proof of payment, rescission, rehabilitation, and clearance certificates in a safe place.
  • Monitor quarterly. You are entitled to a free annual report from each major bureau. Stagger them across the year for continuous oversight.

Frequently asked questions

1) How often should I check my credit report?
At least once a year per bureau. Many people stagger reports from different bureaux each quarter so that any issues are picked up early.

2) Does viewing my own report reduce my score?
No. Checking your own report is a soft enquiry and does not affect your score.

3) How long does a default or judgment remain on my report?
Adverse classifications such as defaults generally display for one year. Civil court judgments remain for the earlier of five years or until rescinded or abandoned. Paid-up judgments and certain adverse listings must be removed in line with the 2014 measures.

4) Why is my score different across apps and banks?
Bureaux use different data and models, and lenders overlay additional internal scorecards and policies. Focus on the underlying behaviours rather than the exact number.

5) How do I remove the debt review flag?
Complete your rearrangement plan, obtain a clearance certificate from your debt counsellor, and ensure that each bureau updates your file to remove the flag.

6) Should I close old credit cards to improve my score?
Not necessarily. Closing your oldest well-managed account can shorten your average age of accounts and reduce available credit, which may increase utilisation. Consider reducing limits and keeping the account active with small, on-time transactions instead.

Final word

Your credit report should not be a mystery. Once you know where to look and what the entries mean, it becomes a dashboard you can control. Verify your identity details, track your accounts and payment profile, correct errors quickly, manage utilisation sensibly, and avoid unnecessary applications. Combine that with periodic monitoring and proper documentation for any legal changes, and your credit health will steadily improve.

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