If you are looking to repair credit when blacklisted do not think that there is no hope for you. There are several ways in which to restore your credit rating. The first of which is obtaining your credit history report to see exactly when and who put you on the blacklist.
Many people can’t get credit and do not actually realise that they are on a blacklist. Until they apply for credit of some sorts.
And even when this occurs they are still unsure of how they are on the blacklist. Or the next steps to take. So here are some tips for you.
Steps to Repair Credit when you’re Blacklisted
Obtain your credit history report
Every single South African can have one free credit history report annually. From both of these credit bureaus: Experian and Trans Union.
This credit history report will detail your credit history profile. It will show you if there are any lenders that have marked you as a bad debtor.
Related Useful Information: Online Credit Score Check South Africa
You can obtain this credit report annually in order for you to keep up to date with your credit history.
However, if you have already received your free copy of your credit history report it does not mean that you have to wait a year to obtain another one. You can pay a small fee and the credit bureaus will supply you with your updated credit history report
Consolidated debt loan
If you discover that you are blacklisted. And want to get rid of the debt that is holding you back then consider taking out a debt loan.
What this means is you calculate the total amount of money that you owe your creditors. Then take out a loan in order to pay it all back in one go.
This may seem like an extreme option, especially if you owe a lot. But it will not only help you pay off your debt but also help you improve your credit history. Should you stick to your instalments.
However, take note that this option requires complete dedication to the cause. Should you for any reason feel that you would not be able to make the repayments then do not consider this option at all!
If you can’t pay back this loan in the required time. Or fall pay on your instalments this will make your credit history even worse.
Dedication to repayments
If you can’t take out a consolidated debt loan in order to pay all of your debt there is still hope for you.
You need to sit down with your budget.
Be honest about how much you can spend on paying back your debt each month and stick to it.
Many lenders will be happy to receive any amount of money a month. As it shows that you do recognise that you have debt with them and are trying to pay it back.
As you go along, this will improve your credit history somewhat. Because it shows a dedication to paying your debt back, even if it is a small amount at a time.
Once Debt is Paid Back
Clear your bad credit record
Once you re-pay all of your debts it is your responsibility to contact the lenders who put you on the blacklist.
Ask them to inform the credit bureaus that you are no longer in arrears. Should they however not do so, you can contact a lawyer that specialises in this field. They can help you with your quest to clear you credit history.
Keep up to date with your repayments and credit rating
Once you have cleared all your debt and cleared your credit history report, you have to ensure that you do not spend outside your means. And do not fall back on instalments.
It is also important that you request your free credit history reports annually.
Keep up to date with them and to ensure that you never again have to go through the process again. And have to repair credit when you are blacklisted.