June 4, 2024

How to avoid blacklisting

avoid blacklisting

How to avoid blacklisting is a common question. However, “blacklisting” isn’t used in the credit industry. This is because the credit bureaus now keep both the bad and good aspects of your credit history, whereas previously they used to keep only the negative information.

Read: Demystifying What Blacklisting Means in South Africa

What “blacklisting” now refers to speaks more to a person’s limited chances when applying – and getting accepted – to take out credit or loans. Credit providers look at your data and financial behaviour when accepting a credit application. You’re less likely to get a “yes” if you have a bad credit report or a low credit score

How to avoid negative data on your credit report

There are a few ways to keep your credit score positive and your financial report healthy to have credit applications accepted.

1. Make payments on time

Late payments when paying back credit and loans can negatively impact your credit report more than expected, especially if you struggle to pay back the amount with the interest that accrues.

To avoid late payments, only take out loans you know you can repay on time. You can also put a debit order in place, so you don’t have to think about it or so that you don’t forget about it!

2. Limit how often you apply for new credit accounts

Each time you apply for a credit account, it can lead to a hard inquiry, hurting your credit score. This isn’t a big deal when there are only a few applications, but the inquiries can add up, which has a compounding effect.

In addition, the older an account is on your file, the better, so opening up too many new accounts can also hurt your credit score.

3. Get professional help

Entering into a professional service with an NCR-registered debt counsellor to resolve any debt can help protect against negative data on your credit report. Signing up for Debt Review also helps protect you against any repossession of property or creditors hounding you and ensures that you find your financial feet and clear debt from your report.

Read: The benefits of living debt-free

Debtline is South Africa’s most innovative debt management company and is passionate about helping people regain control of their finances.

With an expert team of NCR-registered debt counsellors dedicated to assisting you in protecting your assets, negotiating with creditors on your behalf, and partnering with a national correspondence team of lawyers. Debtline has the expertise to partner with you to eradicate your debt on the path to the peace of mind that comes with being debt-free.