In this episode, Motheo Khoaripe speaks Head of Collections and ECM Strategy at Old Mutual Finance, Senzo Lubisi who is joined by Senior Decision Analytics Consultant at Experian SA, Vusi January.

Consumers can contact credit bureaus to dispute errors or inaccurate information on their credit reports. They need to provide identification, proof of address, and supporting documents. Credit bureaus are required to investigate disputes within 20 days and update the reports accordingly. If the credit provider agrees with the dispute, the information is corrected. If not, consumers can escalate the matter to the credit ombudsman.

In this episode (part 2)

• Credit providers cannot discriminate against applicants without credit history. They use non-credit information, such as demographic data, geographic information, social media interactions, and artificial intelligence to assess the risk of potential customers. They may offer lower credit limits initially and closely monitor repayment performance before increasing limits.

Take Outs:

1. Contact credit bureaus to dispute errors or inaccurate information on credit reports, providing necessary documentation.

2. Maintain a good payment history and keep existing credit accounts in good standing to improve credit scores over time.

3. Reduce the number of credit inquiries and outstanding balances on revolving credit accounts to improve credit scores.

4. Ensure no unauthorized accounts are open to avoid negative impacts on credit profiles.

5. Understand the differences between debt consolidation, term extensions, and debt reviews, and their respective impacts on credit profiles.

6. Seek financial education and guidance to better manage credit and improve credit scores.