How To Wipe A Credit History Clean

By Dave Nyam •  Updated: 01/20/24 •  6 min read

Think of the credit history as a report card on past and current credit activities. It may include loans, credit cards, and payment histories. It’s basically how well you’re handling debt and how reliable a borrower you are.

Your credit history can help or hinder your ability to get credits and the interest rates and terms offered. A good credit history will help you attain whatever goals you want in your financial life, like a house or car or even opening that dream business.

But what if you have a bad history of how you got credit? Okay, get ready for some issues, such as lenders turning you down for credit, increasing interest rates, and having to give collateral or a guarantor.

This piece discusses how you may wipe your credit history in South Africa and why it’s the best idea. We answer popular queries around the subject and give tips and tricks to enhance your credit score.

How To Wipe Your Credit Report Clean

You’re with a bad credit record and wondering if it’s easy to wipe it white and begin afresh? That’s possible, but it demands some shots and tolerance. You can brighten your credit history by doing the following:

The first thing is that you have to make payment of your debts. The best way to clear the record is by settling your outstanding balances. This shows you’ve done your part and can, in turn, improve your credit score. According to one of South Africa’s biggest credit bureaus, Trans Union, your name usually comes off the blacklist anywhere between 7 to 20 days of paying your debt.

Next, commence negotiations with your creditors. In case you are not in a position to pay off all your debts at once, engage your creditors to accept payment of a discounted amount or give you more time to clear the payments. You may also request them to clean up any bad information reported about you to the credit bureaus after paying them. Again, bear in mind that this is not a certainty but is discretionary on the goodwill of your creditors.

You might also dispute errors. Sometimes, your credit report could have some erroneous or old details detrimental to your score. You can refute any of these errors with the credit bureau and ask them to rectify them. You must provide proof of the errors and follow the bureau’s dispute process. This can take up to 20 working days to resolve.

Finally, forward an application to have your debt reviewed. You may ask to be put under debt review if you’re overindebted and unable to complete the monthly loan repayments. Via a legal process called debt review, a person’s debts could be re-arranged to still be cleared in a doable and cheap way. It involves having a debt adviser assess your financial report and mediate (on your behalf) with your lenders. During the debt assessment process, you will be protected from lawsuits and blacklisting. However, remember that you won’t be able to access any fresh credit until you’ve finished the procedure and received a clearance certificate.

Can A Credit Report Be Deleted?

You may now wonder if your credit report or some negative information could be wiped out. Great, here’s the answer. You may remove only inaccurate or outdated details on your credit record – such as inaccuracies, fraud, or obsolete listings. You could do so by challenging the info with the credit bureau, like TransUnion, and forwarding proof of inaccuracy. The credit bureau will then be required to assess and rectify or delete the details within twenty working days.

But there’s a catch. Accurate and valid info such as late payments, defaults, judgments, or debt reviews may not be removed from your credit report. Such info will stay in your credit report based on how serious it was for a certain time. For example, while a delayed payment will stay for one year, a verdict will stay for five years. The sole way for these details to be able to be deleted is by clearing the loan or resolving with the creditor.

How Do I Remove My Identity From The Credit Bureau In South Africa?

Want to clear your details from the SA credit bureau? Below is everything you must do:

First, servicing your debts promptly. Consistent payment shows that you are responsible and thus reliable enough to be entrusted with lending money. It also saves the creditor from reporting you at the credit bureau or seeking legal action against you.

Next, meet your lenders and agree with them. If you can’t meet all your obligations concurrently, trying to discuss with your lender for less or an extra period to clear it is pivotal. After discussing with the debtor, you may request them to remove any negative details from your credit statement.

Consider consolidation loans or bad credit loans. If, due to blacklisting, you are unable to get credit, apply for a loan specially created for poor payers. You can apply for a loan to consolidate your previous obligations in one manageable payment. This way, it helps you reduce your interest fees and charges and further back your cleansing status.

Lastly, apply to get a credit report. You are eligible for a free yearly credit statement from one of the primary bureaus in South Africa, such as TransUnion, Experian, or Compuscan. Apply this statement to check your debtors’ history, ratings, and credit records. You can also dispute any errors or outdated information affecting your credit rating.

Benefits Of Cleaning Up Your Credit Report

Boosting your credit score may significantly affect your financial status in South Africa. You could be astonished at how much of an effect disputing incorrect or old-fashioned info has on the credit score. Your odds of receiving a loan with good terms and conditions rise if you do this. Interest rates, fees, and insurance premiums can all add up, but a higher credit score could help you save a little. But you know what? A spotless credit record might enhance your credibility and assurance as a borrower.

What Is The 609 Loophole?

You may be familiar with the 609 loophole. In the context of the FCRA, it is a word with some meaning. Your right to receive a copy of your credit statement and any other info from the three major credit reporting companies is highlighted in this section. Not only that, though. Additionally, you can request that the credit bureaus either confirm or remove inaccurate or out-of-date information from your reports by utilizing this right. Boosting your credit score and deleting negative items can be obtained with this.

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