select
|

How to clear your credit record

With the current economic climate in South Africa Businesses are forced to take judgement against consumers in order to recover outstanding debt, this has resulted in more consumers being listed with credit bureaus.

The big question when this happens to you is 'how could I clear my credit record ?'
First thing that is needed is a rescission of the judgement that resulted in the credit listing and must be obtained from the courts. To start the process, first establish the reason for the judgement as it may influence the claims which have to be made in an affidavit accompanying an application for the rescission.

Judgements can be obtained in two ways, either by default, which means the action was instituted against the debtor who failed to defend the matter, or due to the process where the matter was unsuccessfully opposed by the debtor.

Collection attorneys offer a service whereby they apply for a rescission of judgement that they have obtained against a debtor and where the debt has been settled.

A rescission application can be brought on the grounds that the judgment debt was settled or that the judgement was wrongfully obtained. This application must be accompanied by an affidavit wherein the debtor states his request and reasons for the rescission. The application is served upon the judgement creditor or his representative and filed at court for consideration.
After the judgement is rescinded, the rescission order must be sent to Trans Union together with the relevant forms in order for them to remove the judgement against the debtor. This could take up to 20 working days.

As banks have tightened up their lending criteria it is important to know your credit status and be in control of it, especially when it comes to applying for a home loan. Banks are even more cautious now than what they were a few years ago. If during the last 6 months you skipped a payment on any of your accounts, for instance even on a clothing account, your chances of obtaining a 100% loan will drop to nil. A few years ago you would still have been eligible for receiving mortgage finance. In the case where you have missed a payment, you will have to wait another 6 months before you are able to apply for a home loan. This means the odds are that you will lose out on that home you were looking to buy and will have to settle for something less," says Sandy Reddy head of origination at EV Finance.

She also noted that the process of applying for a rescission is a lengthy and costly one and being blacklisted carries more repercussions than not being able to obtain any credit.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 23 Nov 2017
      Reserve Bank Governor, Lesetja Kganyago, said that the Monetary Policy Committee had once again decided to let the interest rates remain unchanged with the repo rate at 6.75%, and the prime lending rate at 10.25%.
    • 23 Nov 2017
      As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
    • 22 Nov 2017
      While sales have noticeably slowed in most sectors in most Cape town suburbs, the security estate sector in Constantiaberg has bucked the trend by remaining buoyant, with sales by August this year already surpassing total sales in 2016.
    • 22 Nov 2017
      The end of the year is fast approaching, and so are all the travellers, tourists and holidaymakers. For those who live near or own a property in a holiday-hotspot, the festive season also brings with it an abundance of short-term rental opportunities. Its a great way for property owners to make a few extra rand for their own holidays or to put towards their savings.
    • 21 Nov 2017
      The buying process is over, and the moving truck has delivered your household goods to your new property. Now it’s time to unpack and turn your new house into a home.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK