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Johannesburg - There has been a steady and significant increase over the past two years in the number of credit-active women in South Africa, according to the latest data released by credit bureau Compuscan.
“As at the end of the first quarter of 2015, it was recorded that there were 2.3 million more credit active women in South Africa than two years ago. In the last year alone, there was an increase of 883 885 credit-active females, bringing the total number of credit-active women up to 9 992 601 as at the end of March 2015,” said Jacobus Eksteen, senior data analyst at Compuscan.
With access to credit, more South African women could have the chance to broaden their horizons through opportunities such as embarking on entrepreneurial ventures, investing in property or financing their own vehicles.
“Credit scorecards are increasingly being used. These scorecards focus on credit activity and utilisation and not gender, allowing women to be evaluated solely on statistically significant behaviour, thus eliminating any discrimination,” explained Eksteen.
“One of the most notable areas in which we’re seeing women put their credit to use is in property.”
As at the end of the first quarter of 2015, the total number of mortgages that belonged to women stood at 1 125 921. The highest percentage (34%) of mortgages that belonged to women fell into the age bracket of 40 to 49 years.
“It’s no secret that women like to shop, and this is in fact reflected on the bureau,” added Eksteen.
The number of store cards that belonged to women as at the end of the first quarter of 2015 was recorded at 10 438 436 – almost double the number that belonged to men (5 360 754) at that point in time. The highest percentage of store card accounts (30%) that belonged to women, fell into the age category of 30 to 39.
“Credit in and of itself is not a bad thing. In fact, access to credit can be hugely positive as it opens up many doors. What must be stressed is that it is important for borrowers to manage their credit wisely, to be careful to not over-extend themselves and to stay up to date with their repayments," said Frank Lenisa, director at Compuscan.
"If the borrower is struggling to do so, they should contact their credit provider as soon as possible to renegotiate their repayment terms as late payment, amongst a number of other details, are recorded on the borrower’s credit profile and affect their ability to obtain credit in future.”
He added that it is important that borrowers regularly monitor their credit report and take time to understand the information included on their credit report.
