News release
Credit management tips for students
With financial freedom comes financial responsibility. Being out of high school and living the university life can be exciting and comes with more financial freedom. The ‘buy-now-pay-later’ trend can be cool, but can be risky in the long run if your debt is not serviced in a responsible manner.
If you have recently graduated from university you probably have many fond memories – independence, friends and starting to earn your own money. It’s also possible that you have put pressure on your finances by taking on too much debt too quickly.
According to Natasha Horwitz, Marketing and Communications Manager for Experian SA, although access to responsible credit can assist you to pay for your education and improve your lifestyle it can also hinder your financial independence.
“Your university years are an important time to build a good credit history that you will need after you graduate,” she says.
“Learning how to effectively manage your credit commitments early can save you from having to pay off debts immediately after you graduate,” says Horwitz. This will also save you from a poor credit history that could affect your future purchases.
The following tips will help students to avoid debt before entering the workplace:
• Budget - never try to buy on credit without knowing if you can afford the monthly instalments. When applying for credit ask the credit provider to show you how much you will pay every month, depending on how much you spend. Calculate how much you can afford to spend every month and do not exceed it.
• Always pay your accounts on time every month. If you are unable to make a payment due to unforeseen circumstances, talk to the credit lender concerned and make alternative arrangements to pay back what you owe. If you fall 2, 3 or more months into arrears, it could have a negative effect on getting access to credit in the future.
• Pay the full instalment amount that is owed on your account(s) every month.
• Become familiar with the information on your credit report. Get into the habit of checking your credit report, at least, once a year to make sure that the information on your credit report is accurate.
• Learn how to save money into your savings account for emergencies;
• Always use your debit card instead of a credit card for every day purchases. This way, you can't spend more than you actually have;
• Always talk to your parents when you are in a financial trouble.
Credit solutions for students can pave the way for brighter future. When managed well they provide an opportunity for students to build the credit history they may need upon graduation to rent an apartment or purchase a car. But when managed carelessly, they can also pave the way for financial pressures and burdensome debt. Be cautious with debt while still studying and build a good credit history.
Footnote
Apply for your Experian credit report by calling 0861 10 5665 or register online at www.creditexpert.co.za.
Natasha Horwitz Experian South Africa 011 799 3400 Natasha.Horwitz@experian.co.za
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Jonathan MahapaMeropa Communications +27 11 506-7333 |
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About Experian
Experian is the leading global information services company, providing data and analytical tools to clients in more than 80 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.
Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2011 was US$4.2 billion. Experian employs approximately 15,000 people in 41 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.
For more information, visit
http://www.experianplc.com
.
News release
Avoid credit heartburn…check your credit status
Johannesburg, 22 November 2012 – Analysts are predicting festive season sales to be brisk this December, but consumers should double check their credit rating 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 report 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 advises that 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.
ENDS
Natasha Horwitz Experian South Africa 011 799 3400 Natasha.Horwitz@experian.co.za
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Jonathan MahapaMeropa Communications +27 11 506-7333 |
Footnote
To access your Experian credit report online and sign-up to receive credit report updates by sms and email, please visit www.creditexpert.co.za . For queries on your Experian credit report please contact Experian Consumer Relations on 0861 10 56 65.
About Experian
Experian is the leading global information services company, providing data and analytical tools to clients around the world. The Group helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.
Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2012 was US$4.5 billion. Experian employs approximately 17,000 people in 44 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.
For more information, visit
http://www.experianplc.com
.