My Credit Status

How To Improve Your Credit Without A Credit Card

High-interest rate credit cards are offered to clients as an easy way to gain access to money that you can use to purchase luxury items.

These cards lead to high levels of debt that becomes unmanageable, leading to negative credit records. The problem is that to build a strong credit rating, you are required to use credit facilities – like credit cards.

So what are your options, if you can no longer qualify for a credit card?

Many people believe that the only way to build credit is to own, use, and maintain a credit card. Although that is one way to build credit, it’s not the only way.

Here’s how to improve your credit without a credit card…

Get a copy of your Credit Report
You are entitled to 1 free report every year

Pay your existing bills on time
In addition to having solid bank accounts and paying down your loans, another good way to build credit is to pay your bills, on time and in full every month

Or, Apply for an overdraft facility

The banks are looking for proof that you are capable of managing your finances correctly and that you are not a high risk of defaulting on your loan commitments.

No Quick Fix After Being Blacklisted

Sadly, quite a few businesses are built on the premise of “kick them when they’re down”.
Illegitimate funeral policy merchants and funeral parlors are right up there, as are unscrupulous tow-truck operators.

And then there are those who claim to be able to clear people’s credit records, magically ridding them of those inhibiting “blacklistings”.

“Michelle” wrote in last week about one such company.
“They would like to clear my credit history,” she said. “Of cause, I have to pay R188 for a ‘legal pack’, which to me is weird.
“They just want to go for your bank account. They are preying on people who would like to fix their credit history for good and all they doing is stealing their money.”

That’s exactly it.
The inconvenient truth is that third parties aren’t able to wipe anyone’s adverse credit listings away; there’s a process which has to be followed – by the person who is listed.

But all those advertising flyers and posters on trees create the impression that, armed with your fee and little else, a company can easily take care of all that for you.

Here’s what the credit ombud has to say about such claims: “Those companies are not able to make such promises.
“If the consumer was listed fairly, the listing will remain on their credit profile, as per the National Credit Act, for the lawfully allowed duration period.”

That’s two years in the case of a default listing, which is a listing relating to non-payment.

“In the case of a judgment,” the ombud says, “Upon paying off the entire debt, the consumer will have to apply to the relevant court for a rescission of the judgment and when the rescission has been granted, the consumer can use the rescission document to approach the concerned bureau to remove the judgment.”

In other words, first you have to pay the amount you owe, and then you have to apply to the court to have the judgement overturned, and if you succeed, only then can you approach the credit bureau, with that document, asking for the listing to be removed.

If the consumer feels that an adverse listing is incorrect or unfair – and there are a depressing number of those on the credit bureau – their only hope of getting it removed is by lodging a dispute with the bureau concerned to remove the listing.

If after 20 days, the listing remains, they may approach the credit ombud for assistance. Call 0861 662 837

Many people who have default listings on their credit records feel it’s terribly unfair to continue to be “punished”, despite the fact that they’ve since paid the debt.

Such listings remain on someone’s credit record for two years as a warning to credit providers that the consumer has a history of not managing their debt well.

But to be fair to the consumer, it is removed after that time to allow them a chance to get more credit, and built up a positive credit record.

In a sense the consumer is seen to have “server their time” and paid for their “crime” and thus they have the right to a second chance at proving that they can play by the rules when it comes to paying back what they’ve borrowed.

source – iol

Removing Accounts, Listings and Judgments From Your Report

Question:

I have two judgments on my credit report that have been paid, and I don’t know how to get them removed.
I also have an account from a company showing in my report, but I never had an account with them. What do I do?

Answer:

The paid up and settled judgments will be removed automatically, but not immediately.

Civil judgments are deleted seven years from the filing date. The status of the judgments will be updated to show that they are paid, but they will stay on your report for the remainder of that seven year period.

You can and should dispute the account you don’t recognize.
To do so, you first need to get a copy of your personal report directly from Experian or ITC.
The report will include instructions to enter a dispute online, by telephone or through the mail.

State in your dispute that the account is not yours. The credit bureau will contact the source of the information, which then must either have the account removed or verify that it should continue to be reported.

If you disagree with the results of the dispute you can add a statement to your report explaining why you disagree.

In some instances accounts that actually are yours are reported under a different company name. Retail credit accounts are a common example. Although the credit card shows the name of the retail store, the account may appear under the name of the parent company of the retail chain in your credit report, which can be confusing.

Before entering a dispute consider contacting the company to ensure the account truly is not yours.
The company may have the account removed based on your providing them additional identifying information.

Thanks for asking.