Can one be scored for credit when under debt review? As per section 86 of the National Credit Act (NCA) No. 34 of 2005, an order for debt review given by the National Consumer Tribunal or the Court, the credit information must be retained by credit bureaus from the date of commencement of the event until a clearance certificate is issued.
This implies that credit scoring is not possible for people under debt review. Under normal circumstances, there is a flag on a consumer’s profile that is under debt review. The flag will show any financial institution that the consumer is currently undergoing debt restructuring and scoring at that time is not applicable.
The fact that someone is under debt review also means that they are not supposed to receive any credit. Under the National Credit Act (NCA) Act No. 34 of 2005, being granted credit while under debt review is deemed to be reckless lending on the part of the lender.
It is only after all debt is paid up and a clearance certificate is issued that the debt review flag is removed. One can then start with a clean slate and start building your credit score within a couple of months.
We have had clients in the past who, after we issued them with the clearance certificate and removed them from credit bureaus' debt review databases, were able to obtain vehicle loans in less than a month after exiting the process. Contact Debt Sage now to see how we can help you live a debt-free life.