It’s time to get off the black list – getting un-blacklisted
What does it mean to be blacklisted and how does this affect me?
Do you remember when you did something naughty at school and your teacher put a black mark next to your name? Well blacklisting is similar, except on a much larger scale. If you have been late to pay any of your accounts or debts, or have failed to pay them at all, you will receive a negative listing on your credit report, which essentially means you have been blacklisted.
Once blacklisted you will struggle to open any new accounts, or apply for finance of any kind because you are now seen as an untrustworthy and unable to manage your (or other people’s) money properly. If you are lucky enough to be given finance, there is a great chance that you will need to put down a larger deposit or pay a higher interest rate. It is therefore extremely important that you try clear your name as soon as possible – or even more importantly, avoid being blacklisted in the first place.
How can I clear my profile?
Having your profile cleared is unfortunately not that easy. Once you have been blacklisted, it can take up to 10 years to clear your name, depending on the type of listing against you. It is generally a good idea to find a legal practitioner as they can help speed up the process with the credit bureau.
The credit bureau?
Every time you apply for a loan, a store account, or any other type of financing, your information is sent to a credit bureau where your details are recorded. They also record and track all your payments and non-payments and then relay this information (both positive and negative) to credit providers looking into your past financials. The ultimate goal of a credit bureau is to reduce the risk associated with any financial transaction. The three main credit bureaus in South Africa are: Transunion, Experian & Compuscan.
How can I find out if I am blacklisted?
As mentioned before, being blacklisted affects your credit rating score, so in order to find out if you are blacklisted you will need to look at your credit rating. MoneyShop can provide you with a free mini-credit report – just click here.
Blacklisting isn’t something to take lightly so we urge you to pay your accounts on time and not skip any payments, because you don’t want to have to go through the financial and emotional stress of clearing your name.