Speaking of which, your credit history is truly something to consider if you live in South Africa. Poor quality might cause major disruptions to your finances. It may interfere with credit acquisition, including credit card, mortgage, and loan applications. It might also have an impact on the conditions and interest rates that are given to you.
Still, things go further than that. You may also have less housing, insurance, or work opportunities if you have a poor credit history. Therefore, as you can see, improving your credit score and clearing any negative credit history as soon as possible is imperative.
Here, we’ll advise you on clearing your South African credit history of late payments. Furthermore, we will explain the significance of this action. Along with providing helpful advice on repairing your credit history, we’ll address some frequently asked questions you may have.
You can reclaim financial control and accomplish your financial objectives by implementing the actions listed here. All right, let’s start.
How Do I Remove My Bad Credit History In South Africa?
Financial prospects may be restricted in South Africa if one has a poor credit history. To enhance it, obtain a complimentary yearly credit report from agencies such as Compuscan, Experian, or TransUnion. Verify for errors, and if you find any, challenge them. Eliminate debts or engage in negotiations with creditors to demonstrate your resolve to do so. Clear your invoices on time to keep a positive payment record. Do not request too many loans within a short period, as this can negatively affect your rating. Regularly monitor your credit statement and rating via application or website tools. You may recover financial control by taking this proactive strategy.
Is There A Way To Remove Bad Credit History?
You might ask, “Is it easy to erase my poor credit data?” if you’re in SA and your credit rating isn’t excellent. The reply is, great, a bit of a varied bag.
You can remove information about errors, fraud, and expired listings that is erroneous or out-of-date from your credit history. How? by raising a dispute with TransUnion, Experian, or Compuscan, the credit bureau. They will look into it after you present evidence that it is incorrect. They’ll change or delete the information in 20 working days if they decide you’re correct.
The really bad news is this. No, you cannot just remove anything from your credit history that is true and valid, such as late payments, defaults, judgments, and debt reviews. This kind of information persists for a time, depending on what it is and how bad it is. For example, a judgment remains in effect for five years, but a late payment is only good for one year. Paying up the debt or reaching a settlement with the creditor is the only option to remove this type of information.
How To Remove Closed Accounts From Credit Report In South Africa
So, you have some closed accounts (those that you’ve cleared off or resolved with your creditors). Now, based on how you’ve addressed them, those can be an excellent or worse thing. If you’ve done excellently, they’re good and may offer your credit rating a great uplift. But if you’ve defaulted or had a judgment against you, they’re negative and can drag your credit score down.
But here’s the thing – you can actually remove these closed accounts from your credit report in South Africa. Below is how:
First, receive a zero-cost credit statement from one of the notable credit agencies, such as TransUnion, Experian, or Compuscan. Check your closed accounts for any mistakes or old info.
Found any errors? Great, dispute them with the credit bureau and show them proof that they’re wrong. They’ll then look into it and either correct or remove the errors within 20 business days.
If you find any old info, like expired listings, get in touch with the creditor and ask them to update the info with the credit bureau. They should do this within 30 days of getting your request.
But what if the lender doesn’t correct the information? You may take the next step and forward the issue to the Credit Ombud. They’re a self-reliant body that resolves disagreements between consumers and loan providers (or credit agencies). They’ll mediate the dispute and help you receive the old details off your credit statement.
How Long Does A Poor Credit Data Last In South Africa?
In South Africa, a poor credit history may stay around for a while, and how long it lasts hinges on what type of negative detail it is and how serious it is. As per My Credit Check, here’s a brief guideline to how long various kinds of bad credit could remain on your statement:
- Inquiries? They’ll remain for twelve months.
- Missed payments? They’re a bit more stubborn – they’ll hang around for 5 years.
- Defaults? Same as missed payments – 5 years.
- Judgments? They’ll also stay for 5 years, or until they’re paid off.
- Debt restructuring? That’ll stay until it’s cleared.
- Sequestrations? They’re like judgments – they’ll stay for 5 years or until you’re rehabilitated.
How Long Does Bad Credit Take To Clear?
How long it takes to have your poor credit clean in South Africa boils down to how you address your dues and speed up your loan game. Typically speaking, it may be anywhere from some months to a few years, based on what type of negative details are on your credit statement and how serious they are. But don’t worry, you could put your foot on the accelerator by implementing the procedures we’ve laid out in this writing.
