Starting March 1, 2025, overdraft data will be reported to credit bureaus, and you may start seeing new information on your credit profile in Splendi.
What is an Overdraft?
An overdraft is a financial product offered by some banks, allowing you to borrow money through your checking (cheque) account. This lets you spend more than you have in your account, up to a certain limit.
For example, if your bank account balance is R100, and your overdraft limit is R500, you can spend up to R600, with the extra R500 being the overdraft amount.
Why is Overdraft Data Being Reported Now?
Overdrafts are now being submitted to credit bureaus because the financial industry is working to make credit reports more accurate and complete. Previously, overdraft data may not have been included in credit reports, but now, as of March 1, 2025, banks must report overdraft accounts to ensure a better understanding of how you manage your finances.
How Does This Affect Your Credit?
- Immediate Impact: Overdraft data will be visible right away to credit bureaus, so if you check your credit report, you might see updates.
- Your Credit Score: Responsible management of your overdraft (keeping within limits and making timely payments) can positively affect your credit score. However, exceeding the limit or missing payments could negatively impact your score.
What Can You Do?
- Stay Informed: Keep track of your overdraft balance and usage.
- Avoid Overdrawing: Try not to exceed the agreed limit to avoid negative impacts on your credit score.
- Understand Your Credit Report: Regularly check your credit profile in Splendi for updates on how your overdraft is reflected.
Need Help?
If you have any questions or need assistance with your credit profile, feel free to reach out to Splendi’s support team at info@splendi.co.za. We’re here to help!
