Personal Information Held by the Credit Bureau
Until someone is in trouble with debt, it’s very seldom that they know what a credit bureau is, what professionals working at these institutions do, or even where they come from.
For those who have ever been faced with debt, you’ve probably received some message or warning from your creditors, related to a credit bureau. Credit bureaus are often referred to as overdue accounts being placed in arrears, which means you are being evaluated by an organisation that keeps records of all your credit-related information.
These records show how debt is managed, as well as used by credit providers and financial institutions, all to conclude whether you can afford to borrow money to pay back your creditors.
When your accounts are placed in arrears, you will always be informed about it. All active credit bureaus must be registered with a National Credit Regulator, before evaluating your debt.
The Roles and Responsibilities of a Credit Bureau
The role of a credit bureau is to keep track of all consumers credit information, which includes your financial history, education, credit history, employment, as well as your identity and personal details.
All this information gets put in a credit report and is documented accordingly. It is also revised whenever a consumer applies for a loan at a bank or tries to open a new account to see whether he/she can adequately manage more debt.
Responsibilities include updating your credit information after payments are made or missed, keeping and removing information for prescribed periods, ensuring information gets corrected whenever it changes and remains accurate and providing reports such as credit reports where required.
How Do Credit Bureaus Use Your Personal Information?
Credit bureaus are only permitted to use your information to decide whether you can afford to take on more credit. They are also only allowed to review your information in the event of investigating corruption, theft and fraud, as well as to consider you for a position of employment to handle money or manage a company’s finances.
Other than that, they only archive consumers information and update it accordingly.