Can I take out credit when I have finished debt counselling?

Can I take out credit after debt review?

Are you wondering if you can take out credit whilst undergoing debt counselling?  The answer is no, but for a good reason. If you are making reduced payments on your existing debt, the last thing you want to do is take on further credit which will make your situation considerably worse. But what about after the debt review process, when all your debt is paid off?

The answer is YES.

You are welcome to apply for credit after debt review. Debt review is not a life sentence. You will be able to apply for credit after successfully completing the process. For some, however, the thought of credit can be quite scary as they are afraid to go back into the situation that got them drowning in debts.

On the other hand, you may be looking to purchase a car or even a house now that you have paid off your outstanding debt.

In theory, you can apply for credit a week after the Clearance Certificate also known as Form 19 has been issued. It is advisable to wait a minimum of 3 months.

When undergoing debt review your credit report is updated to reflect that you are in the process. After the debt review process has been completed the clearance certificate is sent to all bureaus to update their records, they may take some time to reflect.

Before you consider taking out any credit after debt review, get a copy of your credit report and check if your profile has been updated. Creditors look at your report as part of their application process. If it is not updated, they find reasons not to extend any credit to you.

▶︎ A better idea may be to start an emergency fund to ensure you manage any unexpected financial challenges.  As part of our debt review process, we will kick start an emergency fund for you.  Just got clearance?

⇢ Then check out our simple savings plan.

You can start saving from as little as R25 per month, with no account fees. Need access to your money urgently? You can withdraw your funds without having to worry about any red-tape!

All with the click of a button.