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Credit 101: You Are Not Blacklisted! Blacklisting Doesn’t Exist Anymore

The term blacklisted is usually used today to refer to an inability to access credit products. In South Africa, blacklisting comes with a unique history: until recently, the credit system only counted negative credit issues.

Thirty years ago, your credit record didn’t count the bills you paid – it only reflected the bills you couldn’t pay. It was a record of insolvencies, administrative rulings, and judgments.

It’s no longer possible to be blacklisted in the old sense of the world, so what is blacklisting today?

Keep reading to learn more about blacklisting and how to check if you’re blacklisted.

Blacklisted: Credit in South Africa Today

Modern banking rules mean everyone in SA applies for credit the same way. Although blacklisting doesn’t happen as in the past, it’s still possible to find yourself blacklisted in the general sense of being barred from banking because of your credit.

Today, the term describes someone who borrows money but fails to repay it. In most cases, it means missing a few payments and then failing to catch up.

Just how many missed payments occur and who you owe them to isn’t clear. In some cases, it means having an overdue payment and seeing your account go into arrears without any legal action. In others, it may mean a credit securing a judgment against you.

Am I Blacklisted?

SA credit bureaus now record positive and negative credit information to provide an overview of your total credit history. it’s no longer possible to be blacklisted.

Your credit history does bring up poor credit decisions, even those that are a few years old.

However, banks look at your credit as a whole, including the nature of your negative marks. They use all the information available to determine what kind of risk you pose to their profits. Banks don’t want to lend money to people who can’t or won’t pay it back.

While creditors may decline your application for a loan or credit card based on your history, they did so after considering your account as a whole.

How to Improve Your Credit

Everyone makes credit mistakes. A missed payment here and there happens. But your credit history shows every late payment and especially every escalated case.

Thankfully, people with less-than-good credit can start turning their report around – and start today.

Look at your credit report to see where you went wrong. Perhaps your debt-to-income ratio is too high, or you have too many high balances on loans or credit other products.

Tackle these issues – and keep paying your bills on time – to improve your credit and qualify for better financial products.

Get Money Even on the Blacklist

Finding yourself blacklisted doesn’t mean you don’t qualify for a loan.

Little Loans offers payday loans up to R8,000 with instant approval. Any South African citizen over age 21 and with a steady income may apply.

Ready to learn more about loans for blacklisted borrowers? Visit our FAQs to learn more.