Buying a car can be tough when you’ve been blacklisted, that’s why we’ve put together this handy guide to help you clean up your credit record.
Many South Africans are faced with the nightmare of trying to get finance once they’ve been blacklisted, or have outstanding judgements or defaults listed against their names. Bad credit can lead to steep interest rates, large down payments or, in worst case scenarios, your finance application could be declined.
As a general rule, it’s a good idea to check your credit score regularly. The National Credit Act 34 of 2005 entitles you to a free credit report annually. We recommend you take advantage of this service as it allows you to keep a finger on your financial pulse.
Wikus Olivier from Debt Safe, a debt counselling service, writes, “the information retained by credit bureaus is regulated by the National Credit Act. Your credit profile is basically built from your credit history. The Act specifies how long this information may be kept on your credit profile. Payment history may be kept for two years. Adverse listings varies from 2-5 years. A judgement will typically be on your credit profile for 5 years”. He explains “all of these factors combine to make up your credit score”. I think that Tranunsion is the best place to get a credit check, there is a small fee but it is a quality report.
Clearing your credit record after blacklisting can be a long, stressful process, so it’s better to try and get your financial affairs in order as soon as you notice a problem.
Read our post on the 9 dumbest car financing mistakes you can make and learn how to keep your credit intact .