I went broke a couple of years earlier, so I have a bad credit rating on my personal name. I’ve lately started a business that’s very profitable, and I have the opportunity to expand and tap into very lucrative returns. However the business need venture capital in order to capitalize on these opportunities. I went to the bank I use for my company which is a Pty Ltd for a business loan. They had a look at my idea and the expansion plans and are keen to process the application also are positive. Because of the fact that I am the sole director of the company my personal credit record could negatively affect my application. I want to know once I’ve received my clearance certificate can I somehow erase the previous 2 years payment history? For when the bank look at my record it will not affect my application?
Thank you for your question.
Unfortunately you cannot erase a payment history. The time will have to pass and eventually your rating will be good again. Usually credit providers only look at the last 6 month’s payment history when considering a credit application. Keep up good payments for that time and your credit rating should improve.
Further you mentioned that you went broke. By saying this do you mean you were declared bankrupt or were sequestrated? If so, a clearance certificate will not assist your cause. If there are any judgements still active against your name you can apply to the court to have them rescinded. These rescission orders can then be sent to the credit bureaus and they will make the necessary adjustments. If you were sequestrated, you can also apply to be rehabilitated. This will see the curator who was appointed over your estate do an analysis whether or not you are fit to re-enter the credit market. Talk to your attorney about this for more detail.