Previously, when credit bureaus only stored negative information, people in South Africa who made use of credit services could be blacklisted. However, for some time now, there has been no such thing as being blacklisted in South Africa. This is because credit bureaus store both negative and positive information regarding your credit profile/ credit history.
The term "blacklisting" can be misleading. It actually refers to any negative information that could be present on your credit profile. This negative information can mean that you are seen as a high-risk borrower to creditors.
While there is no such thing as being blacklisted in South Africa, your credit report can contain negative information. You can check if you're 'blacklisted' for free in South Africa online or view this negative information by getting a copy of your credit report. Most credit bureaus offer one FREE copy of your credit report every year. Check out Experian for a copy of yours. This negative information can affect whether you get approved for a loan and your overall credit score. The negative information that can be stored on your credit profile can be:
Find out everything you need to know about your credit score and how you can improve it by watching this video with Founder & CEO of Meerkat, David O'Brien:
Credit lenders see you as a higher risk and may either:
Do you want to stop negative information from appearing on your credit report? Are you stuck in a cycle of missing debt payments. Meerkat can help you!
The time negative information remains on your credit report depends on the type of negative information it is. Let’s consider how long ‘blacklisting’ lasts in South Africa, depending on the type of negative information:
A judgement is granted by a court against a consumer who has not paid their debts according to their credit agreement.
Read: What to do if you have a judgement against you
A judgement can stay on your credit report for 5 years or:
or
Read: What to do if you have a judgement against you
Defaulting on your account means you have not followed the terms of your credit agreement. This agreement was signed when you took out a loan for a service or product. A default can include either missed or a late payment.
A creditor will usually wait at least 30 days after a consumer has missed a payment before notifying a credit bureau.
Your credit report is usually updated every month when creditors send credit bureaus updates regarding your credit profile.
An inquiry by a credit lender can remain on your report for 1 year.
A default can remain on your credit report for 5 years.
The best way to improve your credit score after being blacklisted is to pay your debt. You can dispute incorrect information on your credit profile, but you can’t dispute accurate information.
If you cannot make your monthly payments or fear you may miss them and get negative information on your credit report, you should strongly consider debt review. This is a great option to help you manage your debt.
Debt review, also known as debt counselling, is a legal debt relief measure in South Africa. Its purpose is to assist South Africans who have too much debt and can't afford to make their monthly debt repayments.
It works by assessing if you are over-indebted. It also takes into account your income and expenses. This creates a reduced and affordable repayment plan to pay off your debt.
Read: Debt counselling | Everything you need to know
Meerkat is a financial wellness company that wants to help South African consumers do MORE with their money. We can help with debt repayment negotiations, provide affordable insurance and help you kickstart an emergency fund
Fill in the contact form on our website to receive a free callback from the Meerkat team today.