Patricia Louw
A credit Bureau report is a detailed record of your credit history, compiled by credit reporting institutions, called Credit Bureaus.
These reports contain information about your credit accounts, payment history, outstanding balances and other relevant financial activities, such as adverse classification of customer behaviour and an enforcement action initiated by credit providers.
Credit reporting institutions, such as TransUnion and Credit Info, as registered under the Credit Bureau Regulations: Bank of Namibia Act, 1997, collect and maintain customers’ credit information, providing lenders with a detailed overview of your creditworthiness when you apply for credit.
Locating your credit report
You can obtain your report by visiting the websites of the two registered credit bureaus in Namibia. Regularly reviewing your credit report allows you to spot inaccuracies, unauthorised accounts, or potential signs of identity theft.
To obtain your free credit report, you may visit:
1. TransUnion at Namibia | TransUnion Africa, and follow the instructions provided.
2. Credit info at consumer information – credit info Namibia, and follow the instructions provided.
Once you obtain your credit report and you come across inaccuracies, discrepancies or disagree with the information presented, it is crucial to take prompt action to correct these errors. Please log a dispute with the relevant credit bureau, as any incorrect information could impact your ability to obtain finance.
Factors that influence credit score
Your credit score, a numerical representation of your creditworthiness, is derived from the information in your credit bureau report. Several factors contribute to your credit score:
Payment history: Timely payments on credit accounts significantly increase your score.
Credit utilisation:
This is how well you keep within your facility limits prescribed by the credit provider. Do not exceed the limits provided, and keep the ratio between what you owe and the limit provided low.
Length of credit history: The longer your credit history or the more credit you have, the more favourably it is viewed by lenders.
Types of credit in use: A healthy mix of credit types, such as credit cards, mortgages and instalment loans positively impacts your score.
New credit: Refrain from opening multiple new credit accounts in a short period, as this may adversely affect your score.
Improving your credit score
If your credit score is not where you want it to be, you can take proactive steps to enhance it. Remember, a good credit score will enable you to get financial assistance at a time when you most need it. Below are some ways to improve your score:
Pay bills on time:
Consistently making on-time payments is the most effective way to improve your credit score. Where possible, load debit orders to ensure all obligations are paid on time with minimal effort.
Reduce credit card balances or overdraft limits: Lowering credit card balances or overdraft limits can positively impact your credit utilisation ratio.
Check for errors:
Regularly review your credit report for inaccuracies and dispute any discrepancies.
Avoid opening unnecessary accounts: Opening too many new accounts within a short timeframe can be perceived negatively.
Diversify your credit mix: A diverse mix of credit types, responsibly managed, can positively impact your credit score.
*Patricia Louw is the finance credit manager at Old Mutual Namibia.