Take Control of Your Finances

Under the National Credit Act, negative information has specific retention periods on your credit report: late payments remain for 1 year after the account is brought up to date, defaults stay for 2 years after settlement, judgments remain for 5 years (or until rescinded), administration orders stay for 10 years, and sequestration remains for 10 years. After these periods, the information must be automatically removed. If it is not, you have the right to dispute it with the credit bureau.

Yes, each formal loan application triggers a "hard enquiry" on your credit report, which can temporarily lower your score by 5-10 points. Multiple applications in a short period can have a more significant impact, as lenders may see this as a sign of financial distress. To minimise the effect, research your options using comparison tools like RandCash before applying, and only submit applications to lenders you are likely to qualify with. Checking your own credit score (a "soft enquiry") does not affect it at all.

The fastest ways to improve your credit score in South Africa include: paying all accounts on time every month (payment history is the biggest factor), reducing your credit utilisation below 30% of your available credit, avoiding multiple loan applications in a short period (each enquiry temporarily lowers your score), and checking your credit report for errors — incorrect information can be disputed and removed within 20 business days. Building a good score takes time, but these steps can show results within 2-3 months.

Every South African has the right to one free credit report per year from each of the major credit bureaus: TransUnion, Experian, XDS, and Compuscan. You can request your report online at their websites or use RandCash's free Credit Score Calculator for an instant estimate. Your credit score typically ranges from 300 to 900 — scores above 650 are considered good, and above 750 is excellent. Checking your own score does not affect it.

Debt review (also called debt counselling) is a formal process under the National Credit Act designed to help over-indebted consumers. A registered debt counsellor assesses all your debts and negotiates reduced repayments and interest rates with your creditors. You make a single, lower monthly payment that is distributed among your creditors. While under debt review, creditors cannot take legal action against you, and your assets are protected. However, you cannot take on any new credit until the process is completed. Debt review typically takes 3-5 years and is best suited for consumers who are genuinely unable to meet their current debt obligations.