FAQs

What is a Credit Bureau?

Short answer:

A credit bureau is an entity that collects, compiles and reports consumer credit information from credit providers to do credit scoring or assessment. Examples in South Africa include Experian, TransUnion, and XDS.

Long answer:

What Is the Role of a Credit Bureau?

A credit bureau is an organisation that collects and maintains information about consumers’ credit behaviour and then provides that information to credit providers (like banks, retailers, and lenders) when they assess applications for credit.

When you apply for credit—whether it’s a personal loan, car finance, a credit card, or a store account—the credit provider usually requests your credit information from a credit bureau. The bureau then supplies a credit report, which typically includes a credit score as well as detailed information about your credit history. The credit provider uses this information to assess risk and decide things like:

  • whether to approve or decline your application,

  • what interest rate to offer you,

  • what credit limit to grant,

  • and what repayment terms to apply.

In other words, credit bureaus help lenders predict how likely you are to repay what you borrow. A strong, consistent payment history can improve your score and make it easier to access credit on better terms. A poor payment history can do the opposite—making credit more expensive, harder to access, or unavailable.

What Does the National Credit Act Say About Credit Bureaus?

In terms of Section 70 of the National Credit Act (NCA), a credit bureau is the type of entity that collects, compiles, and reports consumer credit information that it receives from credit providers, mainly for the purpose of credit scoring and credit assessments.

Put simply, the law recognises credit bureaus as key players in the credit system, but also sets rules for how information is gathered, stored, displayed, and removed. This is important because your credit record can significantly affect your financial life—so there must be legal boundaries to protect consumers from unfair or inaccurate reporting.

Why Credit Reports and Credit Scores Matter

Your credit report is more than just a list of accounts. It is a summary of your credit behaviour over time. Credit providers use it to answer questions like:

  • Do you pay on time?

  • How much of your available credit are you using?

  • Do you have accounts in arrears or under enforcement?

  • Are there signs of financial distress (like debt restructuring)?

  • Are there patterns that suggest fraud risk?

A credit score is usually a number generated from the information on your credit report. It’s a quick indicator of risk, but it isn’t the only thing lenders consider. Many lenders also look at affordability (your income vs expenses), employment details, and existing commitments.

If you want to educate readers further, this is a good place to add internal links to:

What Consumer Information Is Kept by a Credit Bureau?

Credit bureaus can store several categories of information about you. The exact details can vary, but commonly include:

1) Payment history and payment status

This can show whether you paid on time, paid late, or missed payments. Late payments and arrears are among the biggest factors that can hurt a credit profile.

2) Fraud detection and prevention information

Credit bureaus may record information that helps identify unusual patterns that could indicate identity fraud, application fraud, or suspicious activity.

3) Payment history for debts that were ceded or sold

Sometimes credit providers sell or cede debt to third parties. Bureaus may keep information about repayment history related to these debts as well.

Your right to access and challenge your information

Consumers have the right to:

  • access the information held about them, and

  • challenge it if it is incorrect, outdated, or unfairly recorded.

If you want to support this section, it’s useful to add an internal link to your guide on how to correct errors on a credit report (for example: steps to dispute, what documents are needed, and typical timelines).

How Long Do Credit Bureaus Retain Your Information?

Credit information is not meant to stay on your record forever. The National Credit Act and its regulations set maximum retention periods for different categories of information. These time limits matter because they help ensure that consumers are not permanently punished for past financial mistakes—especially when those mistakes have been resolved.

According to Regulation 17(1) of the NCA, the maximum periods for retention include the following:

Retention periods for consumer credit information (Regulation 17(1))

Category of informationWhat it includesMaximum period
Disputes lodged by consumers (details/results)Number and nature of complaints and whether they were rejected; complaints that were upheld may not be displayed6 months
EnquiriesNumber of credit checks/enquiries, including who made the enquiry and a contact person (if available)1 year
Payment profileFactual information about your payment profile5 years
Adverse classifications of consumer behaviourSubjective classifications of behaviour1 year or within 14 business days after settlement
Adverse classifications of enforcement actionEnforcement-related classifications1 year or within 14 business days after settlement
Debt restructuringCourt/Tribunal order under section 86Until the period in section 71(1) or until a clearance certificate is issued
Civil court judgmentsIncluding default judgmentsEarlier of 5 years or until rescinded/abandoned(as per relevant legal provisions) or within the period prescribed in section 71A
Administration ordersAs per the court order5 years
Sequestration ordersAs per the court order5 years or until a rehabilitation order is granted
Rehabilitation ordersAs per the court order5 years
Maintenance judgments (Maintenance Act 99 of 1998)As per the court judgmentUntil the judgment is rescinded by a court

What this means in real life

  • Some information (like enquiries) drops off fairly quickly.

  • Other information (like a payment profile) can stay for several years.

  • Items related to debt restructuring (debt review) remain until the legal requirements are met and a clearance certificate is issued.

  • Serious legal outcomes like judgments, administration orders, or sequestration can remain for longer, though there are conditions that can shorten the period (for example, rescission, abandonment, or rehabilitation).

Because these rules can feel technical, many consumers benefit from help interpreting what should still appear on their record and what should have fallen off.

Common Reasons Credit Bureau Information Can Cause Confusion

Consumers often feel anxious about credit bureau data for good reasons. Some of the most common problems include:

1) Outdated information

An account may have been settled, but the record may not reflect it yet—especially if the credit provider hasn’t updated the bureau.

2) Duplicate listings

Sometimes the same debt appears more than once (for example, if it has been transferred between collectors). This doesn’t always mean the debt is “double,” but it can look alarming.

3) Incorrect personal details

If identity details (like address history or employer details) are wrong, it can raise fraud risk flags and complicate applications.

4) Confusion around legal statuses

Consumers under debt review often misunderstand what should happen to their credit record during the process versus after clearance.

Worried About Your Information With Credit Bureaus? How Debt Sage Can Help

If you feel uncertain about what your credit report says—or you suspect something is wrong—getting support can save time and reduce stress. Debt Sage can assist in practical, consumer-friendly ways, such as:

1) Obtaining your credit reports

Many people never check their credit report until something goes wrong (like a declined application). Getting the report is the first step to understanding your position.

2) Reviewing and explaining what the report means

Credit reports are often full of codes, abbreviations, and confusing categories. A guided review helps you understand:

  • what is normal,

  • what is harmful,

  • and what may be incorrect.

3) Negotiating repayments to settle outstanding debts

For consumers trying to improve their credit standing, settling outstanding accounts can be a key part of the solution—especially where settlement will trigger updates or removal timelines.

4) Identifying information that qualifies for removal

Not everything stays on your record forever, and not everything is allowed to be displayed in the same way. Knowing what qualifies for removal (and when) helps you plan your next steps.

5) Identifying information that does not qualify for removal (and advising what to do)

Some items can’t be removed simply because you want them removed—especially certain court-driven outcomes. However, even when removal isn’t immediately possible, there are often steps you can take to improve your situation, correct errors, or prepare for future clearance.

Final Takeaway

Credit bureaus play a powerful role in the credit system. They collect and report credit information, provide credit reports and scores to lenders, and help credit providers assess risk when consumers apply for credit. Because these records affect real-life decisions—like whether you can finance a car, qualify for a home loan, or even get a cellphone contract—it’s essential that the information is accurate and fair.

The good news is that consumers have rights: you can access your credit record, challenge incorrect information, and understand how long different types of data may be kept. If you’re unsure about what your credit report shows—or how to improve it—professional support can help you take clear, lawful, practical steps forward.

 

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