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Frequently asked questions about credit reports and credit clearance

Many people have been turned down for credit because there is a problem on their credit report. What can you do if there are problems on your credit report?

What do you do if you have applied for finance for a new car or a loan and the bank says there is a problem on your credit report?

Let’s talk about blacklisting.  There is no such thing as a blacklist.  There is no list at the credit bureau with names of blacklisted individuals.

Therefore, you can’t go to the credit bureau and ask them to take you off the blacklist.

A credit score is made up of a combination of how you have paid in the past, how much other credit you have, how much you earn etc and the credit bureau works out a score for that, and that’s your credit score.

READ MORE: How to improve your credit score

What do you look for on a credit report to see why you have been turned down?

Many people bring this problem to us and we look at a few things on the credit report.

  1. Judgments

Do you have a judgment on your report?  If you do, has it been paid up or do you still owe money?

If you still owe on a judgment then it needs to be paid before it can be cleared from the report.

The only other option is, if it is mistake, to go back to court and ask them to fix the mistake, but that costs lawyer fees, etc.

  1. Prescribed accounts

Are there any accounts which are prescribed? This is a strange, standalone law. The Law of Prescription, Die Wet Van Verjaring, says that normal accounts prescribe after three years if you haven’t paid or if the bank or other creditor hasn’t gone to court in those three years.

If you make one payment in that time, the three years starts again from the day you made the payment.

Many people have prescribed accounts on their credit records, especially contract workers.

  1. In duplum or doubling

This means if you take a R10 000 loan and don’t pay properly, and the interest and costs mount up, then the total you owe cannot exceed double or R20 000.

Most banks have systems which monitor this.

ALSO READ: 6 Myths about your credit score

If you have a problem getting credit because of something on your credit report, then we will:

  • Draw a credit report and see if there are any judgements,
  • Look at prescription
  • Look at in duplum or doubling
  • Tell you what we can do to fix your credit report

If you have been turned down for credit and need assistance, contact RD Debt Counselling today!