New USSD service to check credit score
In a country such as South Africa, where smartphone penetration is moderate and credit awareness is low, such a service is useful. In 2016, Pew Research revealed that only 37% South Africans use smartphones, with 52% relying instead on traditional mobile devices. In addition, the National Credit Regulator reported last year that less than three percent of South Africa’s 24.25 million credit-active people check their credit information at least once per year.
Helping South Africans manage their credit
“Our goal is to help all South Africans understand and manage their credit so they can take control of their financial health,” said Garnet Jensen, senior director for TransUnion South Africa. “The new USSD offering makes it quick and convenient for consumers to keep track of and manage their credit health, make informed financial decisions and better prepare for conversations with credit providers during their credit applications processes.”
Consumers can register for the new product by verifying basic consumer information, which is further secured through validation of the consumer’s cellphone number. Once registered, consumers will have access to their TransUnion Consumer Credit Score through an SMS short code number. A registered consumer can also access their credit summary information such as the number of defaults, judgments, enquiries and late payments contained in their credit report. In addition, USSD users can see their debt profile with TransUnion, as well as how their credit score compares to national averages among consumers listed with TransUnion.
Lenders use credit reports and scores to assess a borrower’s riskiness and to inform the terms of a loan. Between October 2015 and September 2016, 1.7 billion credit profiles were queried with the credit bureaus, highlighting the value and importance placed on a consumer’s credit profile.
To access the USSD service, dial *120*8801#.
