Are you credit blacklisted? – Know the facts

Are you credit blacklisted? – Know the facts 2018-05-07T13:02:00+00:00

What does it mean to be blacklisted?

Being blacklisted is a register of persons who have been recognized as a risk and are therefore denied access to certain privileges and services. In South Africa you may be placed on a blacklist because of your failure to consolidate outstanding debt. This situation can be especially detrimental if you are trying to acquire assets (motor vehicles, property) where you may need to apply for a loan from the bank.

Being blacklisted is not something you should be ashamed of. Many professionals find themselves on a credit blacklist. Teachers, credit controllers and admin people are just some of the professionals that find themselves in this situation.

Types of debt

There are various types of debt that you should be aware of so that you know upfront the magnitude of your task ahead.

Statistics indicate that one in four people in South Africa are credit blacklisted. This suggests that there are five million people whose names currently appear on an ITC/credit blacklist. If you fall into this group, don’t become despondent as you are definitely not alone.

Rectify your bad credit history

The good news is that there are easy steps you can take to rectify your credit rating so that you can attain debt consolidation and your name is removed from the credit blacklist. Credit repair and debt consolidation can get you back on the right track.

Myths on being blacklisted

There are many ‘urban legends’ and myths about the way in which a credit blacklist works. The main question on your mind probably is:

Will I be blacklisted forever?

The answer to this question is no. However, it is the steps you take to repair your credit history that will determine how long you remain on a credit blacklist. Lenders will review your payment history before giving you additional credit. Your chances are greatly improved if you can show that you are consolidating your debt.

FAQs about being credit blacklisted

How could I be blacklisted

If you have ever borrowed money in the past then you could be blacklisted. The credit you owe could be in the form of a bank loan, credit card, store card or even a mortgage. Information about your loans is held by a Credit Reference Agency – in South Africa this agency is called the ITC.

The ITC records information about each different account you have opened – normally who the lender is, the outstanding balance and a history about whether you have made your repayments on time and if any have been missed. Late payments or missed payments will be ‘red-flagged’ and will inhibit you when you apply for more credit.

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