Debt counselling can affect your credit score for as long as you are under the process. As was mentioned earlier in the blog post, debt counselling may leave you with a credit score of zero after, so this is a chance to slowly rebuild your credit score.
You can do this by opening a retail or store account and managing your credit usage wisely. This means not using up all your available credit, but rather, aiming to keep your usage below 30%. You should also ensure that you consistently make your monthly repayments on time for this account.
You should be able to apply for debt ONE week after receiving your Clearance Certificate. A clearance certificate is the document that lets both you and credit bureaus know you've successfully completed the debt review process. However, according to the National Credit Regulator (NCR), Credit Bureaus have up to 21 days to update your profile. Because of this, we would suggest waiting a bit longer and checking your credit report for about 3-4 months after finishing the process.
A reminder that applying for credit for a car or home would mean that you would need a sufficient credit score. After the debt review process, this would mean starting with opening a 'smaller credit option' like a retail account. You would then need to keep this account open and make consistent payments for a year, AND THEN, move on to applying for a home or car.
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
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