Johannesburg, 04 Dec 2012
Analysts are predicting festive season sales to be brisk this December, but consumers should double-check their credit ratings before spending big this festive season, a leading information services company has warned.
Experian South Africa says consumers should be armed with all the necessary information to ensure they have access to the funds they need, but to also prevent them from overspending.
Professional services group Adcorp is expecting "a strong seasonal peak" in employment between November 2012 and February next year, mainly as a result of a "resilient" retail sector.
Loane Sharp, Adcorp's labour economist, this week observed: "The retail sector is doing strikingly well, and all of the sectors that are connected to consumer spending, like transport and logistics, and food and clothing manufacturing, should do very well this festive season."
It is against this background that Michelle Beetar, Managing Director at Experian South Africa, urges consumers to check out their current credit reports before they start thinking about spending. "Your credit history needs to be in good shape to allow you to secure credit and you need to be fully aware of your status and your limits," she cautions.
Beetar encourages consumers to take advantage of the free annual service provided by the credit bureaus as prescribed by the National Credit Act, giving consumers the right to access their credit reports once a year at no cost.
The service is available online, and call centre agents are invariably on hand at the bureaus; agents who are trained to assist consumers to better understand their reports and advise them on possible courses of action for remedying any uncertain or negative information.
Beetar also debunks the myth that South African credit bureaus maintain blacklists.
"Because bureaus record both positive as well as negative credit information submitted by credit providers, it is impossible to maintain a one-sided negative report."
She says consumers have the right to dispute the data contained in their reports, should they feel the information is incorrect.
"The onus is then on the bureau to investigate that data and to remove it from the consumer's record, should credible evidence exist in support of that information not being accurate."
Beetar earnestly encourages consumers to take advantage of their right to access their personal credit reports, partly with a view to ensuring they can access the credit they need, and partly as a reminder that untoward spending could well result in credit heartburn further down the line.
Footnote
To access your Experian credit report online and sign up to receive credit report updates by SMS and e-mail, please visit www.creditexpert.co.za. For queries on your Experian credit report, please contact Experian Consumer Relations on 0861 10 56 65.