The last 15 months have been very difficult for many South African, many have lost their jobs, some have had to close their businesses, and many have been blacklisted.
Being blacklisted happens when someone who is seen as a risk and denied access to certain financial privileges and services. In South Africa, you may be placed on a blacklist because of your failure to consolidate outstanding debt.
When you are blacklisted you are unable to qualify for new credit facilities. In instances where you have a poor repayment credit profile, prospective credit providers will decline new credit facilities.
Also Read: How to build your credit profile to get that car, home and business you want
Thomas and Skhumba received a call this from an anonymous caller who shared how they were blacklisted and were struggling to secure employment due to their credit profile. Kaya 959 listeners gave advice on what to do when you’re blacklisted.
Listen to full conversation here:
Debt Reconciliation
One listener advised that the caller must consolidate all their debts and have one payment every month, his logic was it don’t help to run away from your debts as this will stay in your record for a very long time.
Also Read: Why you should check your credit score and credit rating regularly
Securing employment while blacklisted
The caller wanted to know how they could secure employment while being blacklisted as many companies do an ITC check before approving candidates for a position.
I’m a Recruiter, ITC check should not be conducted on candidates applying for jobs that don’t entail managing finances or providing financial advice. In his case, as a sales person, his credit background should not affect his ability to secure employment #ThomasAndSkhumba
— Nkhensani Mhlarhi (@nkhensi) July 19, 2021
Also Read: Tips: Help your credit score to improve
Blacklisted, here’s what you need to do:
- Regularly check your credit profile
It’s important to know exactly what is going on with your credit profile. Check your credit report from one of the reputable credit bureaux. You are entitled in terms of the National Credit Act (NCA) to one free credit report per year.
- Keep your payment history consistent
Make sure you observe your payment behaviours for the past 24 months. If you have a good payment history for the past 3 to 6 months it should significantly help to improve your credit profile and credit score.
- Settle your judgements
If there are any judgments on your credit profile, try to settle those first. The new Credit Act Amendments states that credit bureaux should remove any listings with regards to a judgement if the judgment was settled.
- Get your defaults up too date
Try to negotiate with the credit provider to remove those default listings or wait 12 months which is the retention period for default listings. Note that Judgments and default listings has a very heavy weight in calculating your credit score.
- Take it step by step
Remember to be patient. It will take at least 3 months to start seeing any movement. Don’t try to settle all your debt at once. This will not have any effect on your credit score. First build up a history of good payment, pull your credit report monthly, and once your score is good, re-apply for the bond.
