Bank And Credit Bureaus

[Flame]

Hi

Anyone know what banks uses what Credit Bureaus, as for a fact not all banks use all of them.

regards

 

[Bismuth]

Not sure, but I think Capitec only uses one (not sure which one), but could be wrong!

It really would make sense for a credit provider to use all of them, but guess then it costs more.

B

 

[Drifter]

Most of the banks use both the big ones, Experian and Transunion.

 

[Flame]

Never knew capitec offers car finance...lol. See my brother inlaw is blacklisted by vodacom...but he managed to buy a car...so i sepose the bank that dealer used a c.b that he was " clean" on.

 

[Drifter]

Capitec are handing put loans left right and centre. What interest rate did they give your brother?

 

[Bismuth]

Capitec are handing put loans left right and centre. What interest rate did they give your brother?

Capitec don't do car finance, afaik, but personal finance. But, they are giving out high-interest unsecured loans, and as a result, are willing to take the risk that most other banks might not (within the scope of the NCA I imagine!).

I don't think African Bank check any credit bureau, they appear will to give out loans to all and sundry, whether or not they can afford it or not, or are blacklisted or not. I know of people with Judgements against them, nevermind blacklistings, that are still able to borrow from African Bank.

I don't know if either bank are keeping within the requirements of the NCA, Capitec appear to be, not so sure on African Bank, but anyone is welcome to correct me.

B

 

[supersunbird]

Never knew capitec offers car finance...lol. See my brother inlaw is blacklisted by vodacom...but he managed to buy a car...so i sepose the bank that dealer used a c.b that he was " clean" on.

Don't came here with that attitude, you posted this in business and finance section and your original post made no mention of car finance.

 

[Flame]

Don't came here with that attitude, you posted this in business and finance section and your original post made no mention of car finance.

i lol at capitec..not the post..chill jou piesang!

 

[supersunbird]

i lol at capitec..not the post..chill jou piesang!

Reason for lol still not detected and how car finance was brought into it, I prefer my piesing at body temperature thank you very much. What's wrong with Capitec (except that you cant buy airtime with internet banking)?

Anyway, I doubt the banks will let out who they use because of people doing the what you are asking about.

 

[bin3]

Just out of interest ... (This is all AFAIK and stand to be corrected ...)

The biggest credit bureau is Trans Union.
(Of you classify Trans Union as a credit bureau, Experian is probably a credit branch )
None of the other ones are really players.

All SA credit bureaus interchange information, or pull info from T.U.
Almost if not all banks would do a credit check on you: what they do with the score is up to them. Usually a lot of extra factors are used in your scorecard, of which your credit score is just one factor.

The fine for not complying with the NCA is so big that no financial institution can really afford it -- that includes Capitec and African Bank.

 

[Flame]

funny thing is.. i have (had) a fnb cc, stb c.c, absa c.c, stb loan, absa bond , stb overdraft and telkom.... transunion and experian only have record of my telkom acc and stb c.c lol....so where is record of my other stuff??

 

[blaaislaai]

Capitec use Compuscan for their credit checks

 

[TimWarren12]

I wonder how this info helps people seeking to invest or seek financial aid from banks??

 

[MrR]

Transunion is the largest of them, but I know one of the banks exchanges information with Compuscan & Experian. IIRC, the FirstRand group (FNB, Webank) makes use of Transunion and another bureau. Nedbank might make use of Experian, but blAbsa and Standard Bank, no idea.

All NCR registered credit providers (Banks) need to do some form of credit assessment as well as an affordability assessment. They calculate your risk profile based on credit bureaus information (number of accounts, judgements, accounts in arrears, fraud status, etc.) and also gets outstanding debt balances and instalment values for use in the affordability assessment. So, although the Banks do not use every single bureau out there (they pay for every enquiry), they need to at least make use of some of them.

As mentioned, Capitec doesn't offer asset financing, but rather personal (unsecured) loans. By default, an unsecured loan will have a higher interest rate; it's unsecured, i.e. there's no collateral, so they need to manage their risk somehow.

The higher your risk profile, the more you pay. The same principles are used in the insurance industries (life, asset, health).

The NCR is very strict when it comes to compliance and I know that they ever so often perform compliance audits at the service providers. Non-compliance is reported and the provider is fined. African Bank had to fork out a R250mil fine not so long ago for reckless lending/over extending clients (like buying a R16mil house on a R20k salary). If you are a bank, the NCR reports you to SARB, and you do not want to get on the bad side of them as you could lose your banking licence (something which is apparently extremely hard to get in the first place).