Guide to Personal Loans in South Africa

Being "blacklisted" is a commonly used term in South Africa, but it's not an official designation. It generally refers to having a negative credit record that makes it difficult to get approved for credit. This negative information is held by credit bureaus and may include:

• Late payments: Consistently paying your bills late
• Defaults: Failing to repay a debt altogether
• Judgments: Court rulings against you for unpaid debts
• Administration orders: When a court appoints an administrator to manage your finances due to over-indebtedness
• Sequestration/Insolvency: Declaring bankruptcy

You can check your credit report from any of the registered credit bureaus in South Africa. You are entitled to one free credit report per year from each bureau. The main credit bureaus are:

• TransUnion
• Experian
• Compuscan
• XDS

Lenders in South Africa use several credit bureaus to assess creditworthiness. The main ones are:

• TransUnion: One of the largest and most widely used bureaus
• Experian: Another major bureau providing comprehensive credit data
• XDS (Xpert Decision Systems): Focuses on alternative data and analytics
• Compuscan: Provides a broad range of credit information services
• Vericred: Additional credit information provider

The length of time negative information stays on your credit report depends on the type of listing:

• Late payments: Usually reflect for 1 to 2 years
• Defaults: Up to 2 years
• Judgments: Up to 5 years or until the debt is settled and you have obtained a rescission
• Administration orders: Up to 5 years or until you're discharged
• Sequestration/Insolvency: 5 to 10 years, or until you're rehabilitated

Debt Review: Debt review is a formal process under the National Credit Act that helps over-indebted consumers through debt counselling. While under debt review, you cannot apply for further credit. Learn more about repairing your credit status.

It's very difficult to get a loan from mainstream lenders if you have a negative credit history. However, some lenders specialize in providing loans to individuals with poor credit, but these loans typically come with very high interest rates and strict terms. Secured loans, where you provide collateral, might be an option, but you risk losing the asset if you default.

• Pay your debts: The most important step is to pay off any outstanding debts
• Dispute errors: If you find any inaccuracies on your credit report, dispute them with the credit bureau
• Settle Judgments: If you have judgments against you, try to settle the debt with the creditor. Once settled you will need to apply to court to have the judgment rescinded
• Wait it out: Negative information will eventually be removed from your credit report after the prescribed period
• Practice good financial habits: Pay your bills on time, keep your debt levels low, and avoid applying for too much credit

Blacklisting is a general term for a negative credit record that results from defaulting on payments or having legal judgments against you.

Debt Review is a formal process under the National Credit Act where a debt counselor helps you restructure your debts and negotiate with creditors. While under debt review, you cannot apply for further credit.

Yes, consistently paying even one account late can negatively affect your credit score and be reflected on your credit report, potentially leading to difficulties in obtaining credit.

Yes, it's possible. This is why it's important to check your credit report regularly to ensure all information is accurate and to be aware of your credit status. Identity theft can also lead to negative listings without your knowledge.

Some lenders do specialize in providing credit to individuals with poor credit histories, but these often come with very high interest rates and fees. It's crucial to be extremely cautious, do thorough research, and avoid loan sharks or unregistered lenders.

• Budget carefully: Track your income and expenses
• Pay bills on time: Set up debit orders or reminders
• Don't overextend yourself: Only borrow what you can afford to repay
• Communicate with creditors: If you're struggling to make payments, contact your creditors to discuss options
• Seek debt counseling if needed: If you're overwhelmed with debt, consider seeking help from a registered debt counselor

The NCA is a law in South Africa that regulates the credit industry. It aims to protect consumers from unfair lending practices and over-indebtedness. The NCA sets out rules for credit bureaus, lenders, and debt counselors, and it provides consumers with certain rights, such as the right to a free credit report annually.

A rescission of judgment is a court order that cancels or sets aside a previous judgment. This can be helpful if you've settled the debt related to the judgment. To obtain a rescission, you'll need to apply to the court that issued the original judgment and provide proof that the debt has been settled. Once a judgment is rescinded, you can request the credit bureaus to update your credit report accordingly.

To determine if you can afford a loan, consider your monthly income, existing expenses, and debt obligations. Use our loan calculator to:

• Calculate monthly repayments based on loan amount and term
• Determine the maximum loan amount you can afford
• Compare different loan terms and interest rates

Remember to include a buffer in your calculations for unexpected expenses and ensure your total debt repayments don't exceed 40% of your monthly income.