Your credit record plays a big role in your everyday finances, so it can be worrying if you find negative information listed under your name. If you’re in this situation, don’t lose hope because the good news is that there are ways to fix it.
WHAT YOU NEED TO KNOW:
Credit bureaus like XDS, TransUnion, and Experian collect details about your financial history, for example, who you owe money to, how regularly you pay your bills, and whether any legal action has been taken against you. If you’ve missed payments or had defaults or judgements listed under your ID number, your credit score can take a hit.
This can make it harder to get approved for credit or to qualify for good interest rates.
But don’t stand still! Use this step-by-step guide to guide your action, as we show you how to check your credit report, fix any mistakes, and take steps to remove negative listings from credit bureaus.
Step 1: Check your credit report
Start by getting a copy of your credit report. You can get one for free from us at Finance365. Once you have it, go through it carefully. Keep an eye out for anything that doesn’t look right, like accounts marked as default, under judgement or debt review.
Keep a sharp lookout for:
- Accounts you’ve already paid off that still show as unpaid
- Judgements that are too old or should have been cancelled
- Duplicate or unfamiliar listings
- Any signs of debt review listings if you’ve already exited the process
Top tip: Check your credit report at least once a month. Early detection helps you fix problems before they grow.
Step 2: Fix any errors
If you find anything incorrect, send a dispute directly to the credit bureau that published the report. You’ll need to include documents to back up your claim, like:
- A copy of your ID
- Proof of payment or a letter confirming the account is settled
- Any court orders or settlement agreements
The bureau has 20 business days to investigate your dispute and if the listing turns out to be wrong, they must fix or remove it. If you’re not happy with the outcome, you can take the matter further by contacting the Credit Ombud.
Step 3: Settle any unpaid debts
If the listing is accurate and the debt hasn’t been paid, your next step is to settle it. Contact the creditor to find out the amount and agree on how to pay. Once it’s settled:
- Ask for a letter confirming the account is paid up or settled
- Make sure it’s signed and on the company’s letterhead
Another tip: Even if you can’t pay the full amount, some creditors may agree to remove or update the negative listing if you settle part of the debt.
Important: If the debt is more than three years old, it may have been prescribed, meaning it could be legally written off if the creditor has not taken steps to collect it. Always check with a legal advisor or your debt counsellor before making payment arrangements on very old debts.
Step 4: Send in your proof
Send your documents to the credit bureau. This includes:
- Your paid-up or settlement letter
- A written request for the listing to be removed or updated
- A copy of your ID
Bureaus generally update their records within seven working days. However, it’s important to know:
- Adverse listings (such as defaults) can remain visible for up to two years, even after settlement.
- Judgements can remain on your credit record for up to 30 years. To remove a judgement, you must first settle the debt and then apply to the court for a rescission order.
Step 5: Follow up
After a week or two, check your credit report again to make sure the changes have been made. If the listing is still there:
- Follow up with the bureau
- Keep copies of all your emails, letters and receipts
Going forward, try to check your credit regularly and keep your payments on track. It’s the best way to keep your credit record healthy.
If you’re someone who has completed debt review, ask your debt counsellor for a clearance certificate. This shows that all your debts are paid or up to date and confirms you’re no longer under debt review. Be sure to send this certificate to all major credit bureaus, as they’re legally required to remove the debt review status once you’re cleared.
Need help?
If you’re struggling with the process or dealing with tricky disputes, consider reaching out for help to a registered debt counsellor such as National Debt Counsellors. They are experienced and help thousands of South Africans every month to regain their financial freedom and become debt free.
Ultimately, fixing your credit record takes a bit of time, but it certainly is possible. Whether you’re correcting errors or paying off debts, taking action now can open the door to healthy financial options for the future.
You don’t need to have it all figured out. You just need to take it step by step and start.
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.
