I recently settled all my debts, I have all my ‘Paid-Up Letters’ – how do I clear my credit profile from all 4 South African Credit Bureaus & increase my Credit Score?
Thank you for getting in touch.
The National Credit Act states that credit bureaus will have to remove adverse information and judgement listings from a consumer’s credit profile if the amount owed has been settled. Consumers no longer need to have their judgement rescinded to get it removed from their credit profile. Furthermore, the retention period for default listings has now been reduced to 12 months. You can also send your paid-up letters directly to the credit bureau.
If you have paid your outstanding debt and have reached your retention period and the information is still listed we would suggest you firstly dispute your credit listing with the company where you pulled your credit report. If you have a complaint about a specific credit provider you can lodge a complaint with the Credit Ombud. Here is a link to their page explaining the complaint procedure.
Building your credit score:
Start the way we all did, with a clothing account. This does not carry much weight with your credit score but is a start and is the most easily obtainable. What is very important though is that you plan how much credit you can afford and borrow accordingly. Don’t fall into the same trap as before. Taking out a personal loan and repaying on time every month is very good for your credit score.
For some reason, financial facilities such as credit cards, overdrafts and personal loans help your credit score along more than a clothing account would. These are however the biggest culprits in making people over-indebted. Our advice: Start slowly, plan ahead and make sure that you only take on credit that you can afford and really need.
Have a great day