How to clear your credit record in South Africa in 2020

If addressing your credit record is on your must-do list for 2020, you are not alone. Economic pressures are more intense than ever before, as South Africa's household debt reached 151.8 USD billion in September in 2019, compared with the reported number of 153.7 USD billion in the previous quarter. To put this into perspective – this number tell us that if all the household debt held by South Africans were to be split equally among all of our country’s citizens, each of us would owe the bank at least R40 000.

date: 21/02/2020Author:

In short, it’s tough times out there, and it’s more important than ever to have a good credit report if you wish to secure a line of credit for big purchases like a house, a car, tuition, etc. However, addressing your credit profile can be a very daunting prospect when you don’t understand how it’s compiled, where to find it, or what to do when you find that your credit record is not as good as you had hoped.

Fortunately, there are a few steps you can take to get the ball rolling. Once you tick the following boxes, the process of clearing your credit record will become a lot more manageable:

Check your credit score.

You are entitled to one free credit profile check per year from a credit bureau like TransUnion.

Get an expert opinion.

If you don’t understand the information you receive once you get the report, don’t feel defeated. Companies like Libertine Consultants offer credit analyses services that explains the info on these reports.

Take steps to address any wrong information.

If some of the information on your credit profile is wrong or outdated, take steps to address it. Libertine Consultants offer credit clearance services that clean the slate and set the record straight.

Adjust your spending and repayment behaviour.

If you’d like to improve your credit profile in the long run, it may be time to address your financial behaviour by maintaining moderate use of credit such as store accounts, loans, etc. and paying it off in a dependable fashion. If you need a more immediate solution that required focussed debt management, we recommend that you consider debt review as a more permanent solution.

Compare your credit score.

In South Africa, credit scores can range from 330 to 850, with higher scores identifying very responsible borrowers and lower scores suggesting less responsible borrowers.

These guidelines should help you to improve your South African credit rating. For more information on the topic or to learn more about debt management and how it can help you to manage mounting debt repayments, don’t hesitate to get in touch with a Libertine Consultants representative. We’re here to help you live a more financially prosperous life in 2020 and beyond.

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Call +27 (21) 949 2211 for advice on debt in Cape Town and rest of South Africa