05 Feb How to Clear Your Name After Your Debt Is Paid

Is all your debt paid off? Congratulations!

Now, how do you go about clearing your name and credit record? What are the legalities involved? How does this impact your credit and ability to borrow?

• There are two ways to get back into the NCR’s (National Credit Regulator’s) good books: removing negative information from credit bureau reports and rebuilding your credit score.
• There is an array of legislation governing clearing your name and credit record.
• There are positive and negative effects on your credit score.

Still perplexed? Read on for more in-depth explanations of these answers.

How To Clear Your Name and Credit Record After Debt Clearance

So, you’ve completed debt review and debt clearance certification. What now?

According to the National Credit Act 34 of 2005, you have to wait one year for paid-up debt and two years for debt review credit to be amended, as reported in section 71 (4). There is good news: the smaller the debt, the smaller the waiting time.

How To Dispute Your Credit

Section 29 (1) of the CPA gives you the right to access your credit report and request corrections. Here’s how.

1. Request your credit report from a trusted credit reporter, like TransUnion, Experian, Compuscan, and XDS.
2. Identify the information you would like to dispute. Don’t forget to gather supporting documentation for your rebuttal.

Information You Might Want To Dispute

• Default listings– these appear on your credit report after failing to pay back a bank or store and not responding to demand letters. This can remain on your profile for two years.
• Civil court judgement– a judgement granted by the court for the creditor after they have formally requested unpaid debt.
• Administration order– this is usually submitted by you, the consumer, to avoid legal action from creditors.
• Debt review– this will stay on your profile until a debt clearance certificate has been issued.

Contact the credit bureau to begin the dispute. Don’t forget to provide your contact information so they can stay in touch during the dispute. They can take up to twenty days to resolve the dispute or inquiry. If not resolved, you can contact Credit Ombudsman for help.

How To Rebuild Your Credit Score

Rebuilding your credit score can seem like a mountainous task, but it isn’t as daunting as it feels. Here are a few steps you can take to rebuild your credit score.

1. Pay on time. Whether you pay on time has a significant effect on your credit record. Consider setting up a debit order to reduce late payments–even being a few days late can influence your credit record.
2. Reduce what you owe. Try to pay off the listings on your credit record according to importance; the debt with the highest interest rates first.
3. Don’t apply for more credit, especially revolving credit (credit cards).
4. Regularly check your credit report. This helps to recognise any disputes you may need to resolve.

Trust Cape Town Legal Consultants

Let us help you dispute your credit record, give you financial advice, and be on your side in the world of finance. Don’t hesitate to get in touch if you have any further questions regarding the information in this article.