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What does blacklisting mean?
The term blacklisting dates back to when the credit bureaus only kept negative information about someone’s finances.
Technically, South Africa doesn’t have a formal blacklist. Instead, credit bureaus collect and store your credit history. This includes missed payments, defaults, judgments, and debt reviews.
Based on your credit history, lenders will check to see if you’re a high risk or a good investment, which will affect how easy or hard it is to get credit.
Beyond the bank
Traditional banks tend to be more cautious about granting you credit if you have been blacklisted, but there are other options available. Microlenders, or short-term lenders like Barko are more flexible.
Some providers may take an asset like your car as collateral for a loan, and some may offer only short-term loans, or charge a higher interest rate.
Fixing a low credit score
A credit score is based on how well you manage your debt. If you pay back your loans, and make your payments on time, you will have a higher credit score. For those who miss payments, or don’t pay off their debt, this will lead to a low credit score.
A low credit score is not the end of your financial world. You can rebuild your credit score by:
- Paying off all your outstanding debts.
- Talk to the companies that you owe money to and agree on a payment plan.
- Avoid making new debt, unless it’s absolutely necessary.
By addressing the problem, and being disciplined with your money, you can still access financial services.
Learn more
The value of credit monitoring
What is a credit score?
