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Your credit express dictionary

Posted: 10 Jul 2015

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Here are the most important terms to help you understand your credit report.

Credit industry terms

Here are a few important credit industry terms and definitions to help you read and understand your personal credit report effectively: A delinquent payer is someone who regularly doesn’t honour his/her credit agreements. Adverse information includes any negative classification on your report, including: ‘delinquent’, ‘default’, ‘non-contactable’, ‘absconded’, ‘slow paying’, ‘written off’, ‘repossession’, ‘facilities/credit card revoked’ and ‘handed over’. An adverse account is an account that has not received payment on or before the instalment due date or not received payments at all. An administration order is an order by a court to repay your outstanding debt. If you are (a) not in the position to pay all your debt; (b) these debts amount to less than R 50 000; and (c) you do not own any other property, which may be sold to pay the debts; you may apply for an Administration Order. CPA accounts refer to a list of secured and unsecured credit agreements which include: Detailed positive and negative account information from the major banks, finance houses, retailers, telecommunications and insurance companies, covering the majority of credit providers in South Africa. (CPA stands for Credit Providers Association) Debt collectors are individuals/companies that recover monies owed on delinquent accounts. Debt restructuring refers to the process where one’s debt repayment obligations are restructured, in order to manage cash flow problems and minimise financial distress. Property Deeds are documents that include the ownership details and specifics of a property. Director Information refers to a person(s) that lead the affairs of a business, trust or institution. Disputed information is information on your credit report that you have indicated to the relevant bureau as incorrect. The credit bureau will then investigate the disputed information in order to rectify it on their systems or reject your request, if the information is found to be correct. Liquidation refers to closing of a business operation by selling its assets to repay outstanding debt. Months in arrears include the amount of months you are behind with a payment on an account. Negative information refers to incidents where you did not fully or partially honour your credit agreement(s). This includes: delinquencies, judgments, bankruptcies, debt that is written off and late payments. NLR accounts include information of accounts that are not linked to collateral, thus unsecured credit agreements. (NLR stands for National Loans Register) Perception in the market refers to how your credit score compares to other credit active consumers’ within the South African market. Positive Data or information refers to detailed information that shows current accounts, balances, credit limits and repayments that are up-to-date. Previous enquiries display any enquiries previously done by credit providers/collectors/potential employers/insurance institutes. Sequestration is the act of removing anything from the possession of its owner, as instructed by law for the repayment to creditors or the state. To default means to fail to pay an installment on time/at all.