Credit bureaus play a very important role in the economy as they make it possible for 18 million consumers in South Africa to buy now and pay later on credit instead of saving the full amount before they can make a purchase.

Credit/service providers rely on credit bureaus to minimise their risk, which makes it possible to extend credit. This also helps stores and banks keep the price of goods down by extending credit to consumers they can trust.

When you complete a credit application form, there are several legislated contractual clauses that you agree to when you sign the application form. You give your consent to the store or bank to submit the information provided on the application form to the credit bureaus for verification of the information you provided. You also give consent to the store or bank to submit this information to TransUnion credit bureau to store it on their database. You consent to the information being shared with any other stores or banks that may enquire on you.

Note: You also consent that should you pay late this information will be forwarded to the bureaus by the store or bank.

A credit report is information about your credit history payment behavior that is maintained by credit bureaus, including Agri Buro. It contains information such as your name, address, employer and ID number – the details you give to credit grantors when completing a credit application form.

Agri Buro also keeps details on your credit history such as your account history and history of paying habits, that is, whether you pay your accounts regularly and on time. A credit report does not contain any data such as race, religious beliefs, political affiliations or medical histories.

You give permission to credit grantors to view your credit report when you apply for credit and you submit a credit application form. Your credit report, along with other decisioning tools that they use to process credit applications, helps them decide whether or not to grant credit to you. In order to get credit you have to give the store information to help them understand you and your credit worthiness.

A judgment is granted by the court against a consumer who has not paid their debts to a credit/service provider. A judgment is public information and remains on your credit report for 5 years or until the judgment is rescinded by a court or paid in full. Once paid Consumers no longer have to get the judgment rescinded in court.

Doing business in today’s environment is tough. Whether you are targeting new business, taking on a new business partner or determining the credit status of your own business, you need to make informed decisions with independent, comprehensive and accurate information.

If you’re looking to do business with another business, accessing a Business Credit Report on that business will help you verify their business and review their financial stability, which will lower the risk for you and make doing business a lot easier.