You check your credit report, and there it is: wrong information. Maybe it’s a judgment you didn’t even know about, or an old debt you thought was paid and cleared. Whatever it is, it’s now standing between you and your goals, whether that’s a basic store account, or a big home loan.
What’s important to know about credit bureau clearance is that such listings don’t have to follow you forever. In this Finance365 ‘how to’ article, we’ll show you how to address negative listings on your credit report. We cover what they are, how to fix them, and how to keep your record clean going forward.
First, though, let’s check in and understand what counts as a negative listing.
This starts with what you might find on your report:
- Overdue accounts: Listings of money you have not paid to a service provider by the due date.
- Defaults: Indications where your credit provider has written the debt off.
- Judgements: References of cases where a court has ordered you to pay an amount to a service provider.
- Debt review: An indication that you are in the process of a NCR Registered Debt Counsellor assessing your financial situation and helping you restructure your debts into a more manageable repayment plan.
Some of these causes for listings might be legitimate. However, others might be wrong, outdated or settled, but the point is that if the information is still on your credit report, it will drag your credit score down.
WHAT TO DO:
Identifying what’s on your credit record
You can’t fix what you can’t see. That’s why the first step is to get a copy of your credit report. In South Africa, you can get free reports from us at Finance365 here.
When you have your report, go through it with a focus on finding any:
- Accounts that are already paid off but still show as open
- Duplicate listings
- Judgements or defaults that are older than five years
- Debt review flags when you’re no longer under debt review
Then, dispute what doesn’t belong in your report
If you find something that shouldn’t be there, you’ve got the right to challenge it. Here’s how:
- Contact the credit bureau that published the credit report directly.
- Provide them with your ID, proof of payment, and a short explanation of the problem.
- Wait while they investigate (they have up to 20 working days).
If the listing is wrong, they are required to remove or fix it.
Top tip: Ask a reputable NCR Registered Debt Counsellor like National Debt Counsellors for help through Debt Review if you need to reach out for assistance at any time.
Don’t forget to deal with the real stuff
What about listings that are correct? It’s time to settle up.
In these instances, you don’t always have to pay the full amount because some creditors will agree to a settlement deal, where you pay a portion in exchange for clearing the listing. But you do need to speak to the Credit Provider to whom you owe money, as this will depend on them. Whatever you agree on, get it in writing. This could be in the form of a paid-up letter or a settlement confirmation.
Remember, it needs to be on the company’s letterhead and must be signed and dated. Then, send that proof to the bureau.
NOW MAKE SURE YOUR INFORMATION IS CORRECTLY UPDATED:
The reality is that listings aren’t cleared automatically, so you have to follow up with the credit bureau. Send your documents to them and ask for the listing to be removed or marked as “settled.” Then, give it about seven working days and check your report again. Still not resolved? Follow up until it is correct.
Keep it clean going forward
Once your record is looking better, keep the momentum:
- Set up reminders to pay your bills on time.
- Don’t take on more credit than you can manage.
Keep in mind that removing a listing does not instantly fix your credit score. Although it will help because a cleaner report means better credit health over time, especially if you keep up good habits.
Never take a shortcut. Instead, have the above action plan in place and in motion, and don’t give up. It’s worth its weight in a golden credit score!
Take the next step by checking your credit score today! Don’t forget to leverage Finance365’s free alert service to stay on top of changes while you improve it.
Whether you’re saving for a new car, planning for a dream home or gearing up for a once-in-a-lifetime vacation, Finance365’s unlimited “soft” credit checks won’t impact your score and can help you reach your goals faster.
Start your journey toward better credit right now. Take control with Finance365 and open the door to the future you’ve always wanted.
