What is a Credit Clearance Certificate and why does it matter?

What is a Credit Clearance Certificate

What is a Credit Clearance Certificate and why does it matter?

So, you had financial difficulties in the past. As a responsible consumer, you opted to make use of debt counselling. You have now reached the point that you have almost completed the debt counselling process. These are exciting times for you as your debt counselling process is nearing the end.

Your debt counsellor has advised you that you will be receiving acredit clearance certificate once all your accounts got repaid in full. We will explain the process after you have received your clearance certificate:

What exactly is this certificate?

This certificate also known as form19 is a vital piece of paper to prove that you have repaid off all your accounts. This certificate is your evidence that you are debt-free and that you have completed the debt review process. This certificate gets issued under section 71(2)(b)(i) of the National Credit Act.

A registered debt review counsellor will only issue the clearance certificate. You will receive this certificate only if:

  • All the restructured accounts as per court order got repaid up in full
  • there are no outstanding Debt counselling fees
  • Home loan finance may get excluded. The credit clearance may get issued if there is a balance on the home loan account.


What exactly is a credit clearance certificate?

What Do I do with my credit clearance certificate?

You don't need to do much. Your debt review counsellor will act under Section 21 of the National Credit Amendment Act. This Act requires your debt review counsellor to submit a certified copy of the credit clearance certificate to all the credit bureaus. The National Credit Regulator requires your debt counsellor to present all paid up letters with your clearance certificate to all bureaus. This is to assure that the rearranged accounts get amended by the credit bureau as paid. The Amendment Act also requires the bureaus to remove the negative months in arrears indicators from the payment profile of these accounts.

Please request your debt counsellor to submit the required documents to the credit bureaus debt review departments. These departments will attend to the necessary amendments within 5 business days. Your debt counsellor will notify you once the process got finalized by the bureaus.

If your debt counsellor has already done this, please submit a copy of the e-mail that got sent to the bureaus. The credit bureaus will follow up with these departments on your behalf.

If your debt counsellor is refusing to issue the clearance certificate inquire why they are refusing. If you have paid off all debts and paid up all debt counselling fees you can then lodge a formal complaint with the National Credit Regulator.

What happens after the bureaus receive my certified certificate?

After receiving your credit clearance certificate each bureau will attend to the following:

  • Access the NCR website. This is to confirm that the current and registered debt counsellor issued the certificate. The bureaus will not attend to your clearance certificate if your debt counsellor is not the debt counsellor on record. 
  • Remove the Debt review indicator.
  • Remove paid judgments and paid defaults.  
  • Update payment profiles of any negative month indicators. These will only be for the accounts which formed part of the debt counselling/ debt review process. 

Sources - Other good reads

The Credit bureaus removed my debt review indicator. When can I apply for credit?

Each consumer's circumstances vary allot so there is no definite answer here. We would suggest being a little bit patient and give your credit record time to adjust over two to three months. 

This will give your credit scores time to start accumulating positive points. Please visit our credit score article to learn more about credit scores.

Avoid the debt trap.

Be mindful of wanting to create more debt after getting declared debt-free. Try and remember all the stress and sleepless nights you had to endure while having too much debt. 

Under debt counselling, you got accustomed to a certain lifestyle. This involved strict budgeting and you got used to only using cash to buy goods and services. This type of behavior should continue after you have received your bureau clearance and credit clearance certificate. 

Keep in mind

When buying on account always keep the following in mind:

  • Stick to a Strict Budget.
  • Don’t overspend.
  • Always pay the required payment each month on all new facilities. 
  • Only get credit cards when you need them. Usually for emergency use only.
  • Keep your monthly repayments for unsecured debts at 10% of your net income.
  • Keep your monthly repayments for secure debts at 20% of your net income.
  • Keep your monthly repayments for secured and unsecured debts at 30% of your net income. 
  • Pay off one account facility before you take on more account facilities.
  • Save, save, and save some more.
  • Know when it is time to ask for help when you fall into trouble. Don’t hesitate to fight debt before you fall into trouble.
  • Never use your cards and loans as a substitute for income. 

Final Thoughts.

Keep working on staying debt-free and work on keeping your finances on track. If you have any questions you wish for us to answer, request a call back message in the boxes located throughout our website. We will get an experienced debt counsellor to get back to you as soon as possible.

You can find more interesting articles in our blog section. Credit Salvage Blog

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Blacklisted High risk creditworthy

Blacklisted, Creditworthiness, credit scores and Affordability?

Blacklisted, Creditworthiness, credit scores and Affordability.

Blacklisted, Creditworthiness, credit scores and Affordability. What are these terms? When applying for credit, these terms will usually pop up when a credit provider declines a credit application. Understanding what these terms mean will help you understand why you have been unsuccessful in securing new credit.

According to the National Credit, a registered Credit provider needs to do in-depth investigations into affordability and creditworthiness. Most Credit providers will outright decline a credit application if a consumer has adverse information on their credit report and got blacklisted. Should a credit provider fail to do these credit assessments, they will be risking granting credit recklessly. Approving credit recklessly is against provisions of the Credit Act.

Credit providers all have different credit policies when assessing a new finance application. Some credit providers will have high affordability rules. Other credit providers will focus on a combination of the two.  In this article, we will explain these different terms and, in the process, assist you with information to get a low-risk creditworthiness and affordability profile.

What is the term blacklisted?

The term blacklisted or blacklisting is a term to describe when a consumer is unable to qualify credit. These rejections are due to an impaired credit record and not due to the consumer being on a blacklist. An impaired, credit record is when there is a record of non-payment of outstanding debts. Consumers with Impaired credit records have a low credit score. These debts include loans, credit cards, bonds, and clothing accounts. As this overused phrase "blacklisted" is being referred to there is, in fact, no blacklist out there. Consumers cannot get blacklisted as getting blacklisted does not exist.



What is affordability?

Affordability forms part of the New Credit Act regulations. It stipulates that registered credit providers can only approve credit if a consumer can afford the new instalment. Affordability calculations will include net monthly income minus living expenses and current debt obligations. The net disposable income will get used to calculate if the new credit application will be affordable. A credit application will get declined if there is not enough disposable income to cover the new credit agreement instalment. 

Credit providers will also consider a consumer’s outstanding balances when assessing affordability. 

Affordability forms a vital part of the credit assessment process. Credit providers will need the following information when assessing a new credit application:

  • Gross and net salary.
  • Monthly expenditure.
  • Monthly Living Expenses. 
  • Proof of pay slips. Usually, credit providers will need the latest 3-month pay slips.
  • Stamped bank statements.
  • Supporting documents to prove any claims of receiving an additional income.

Credit providers will also look at a consumer's current revolving loans and credit cards available credit. Credit providers will decline a new credit application if the disposable income available would not cover all the current credit agreements should a consumer max out all the available credit.

Reckless lending forms part of the National Credit Act regulations. Credit providers are responsible that the consumer applying for new credit can afford the new payments. The credit act regulations stipulate credit providers “take practical steps to assess a consumer or joint application income to determine whether a consumer has the financial means to pay the proposed credit instalment”.

To avoid a credit application to get declined in future ensure that the new instalment will be affordable. Having a low affordability figure does not mean you are blacklisted.



Is creditworthiness the same as being blacklisted?

Creditworthiness is a snapshot of how a consumer has managed their payments on current and past credit agreements. A consumer’s creditworthiness will tell a credit provider how likely a consumer will be able to repay the new debt. Low-risk consumers have a high credit score and, high-risk consumers will have a low credit score. A consumer will be regarding as blacklisted if any adverse reflects. 

Credit providers measure creditworthiness by scrutinizing 

To get regarded as a low-risk creditworthy applicant ensure the following gets maintained on current accounts:

  • Pay all accounts on time without any missed payments. This includes all credit agreements, insurances, DSTV, and cell phone accounts.
  • Settle any doctors accounts as soon as possible. Collections are quick to list for outstanding doctor accounts.
  • Keep outstanding balances low on all clothing and credit cards.
  • Avoid applying for new credit and only do so if the need arises. 
  • Do not close accounts with a good history with high credit limits. 
  • Dispute and correct any inaccurate information on your credit report.

Being regarded as a creditworthy low-risk consumer is vital for future credit applications. Having a low-risk high credit score will ensure assets like homes gets financed at low-interest rates. Being regarded as not creditworthy might be misconstrued as being blacklisted.

What is the difference between blacklisted, affordability and creditworthiness?

Being regarded as a blacklisted consumer looks at adverse listings. Affordability is the process of establishing if a consumer can repay a new credit application. Creditworthy assessments show the likelihood of a consumer being able to pay a credit agreement.

In the following example, we will illustrate the differences between blacklisted, affordability and creditworthiness.

John a, successful mine manager, has a good income but has never taken out any form of credit in the past. John applied for vehicle finance as the vehicle he bought for cash broke down. John could afford the new vehicle instalment but might get declined as there is no history to show how he managed past or current credit payments. In this example, John has affordability but will fail on creditworthiness assessments.

In another example, John has a good income but has several loans, credit cards, a bond and vehicle finance. Johns net disposable income is barely enough to cover current debt obligations. John has never defaulted on any payments and applied for a new credit card. In this example, John will have an excellent track record, good credit score and is not blacklisted. John will get declined as his affordability is lacking even though his creditworthiness is excellent.

To get that approval for new credit facilities it is vital to show that there is no adverse (blacklisted), you have affordability and is creditworthy.

How to Improve and increase affordability effectively!

Credit providers will do affordability calculations to establish how much disposable income a consumer has after paying for living expenses and current debt obligations.

To improve the chances of getting credit applications approved increase affordability in the following ways:

  • Manage your cash flow.
  • Avoid or reduce spending on non-essential purchases.
  • Reduce grocery spending by buying no-name brands and in buying in bulk.
  • Reduce transport costs by using public transport.
  • Reduce balances on clothing and credit cards, ~reducing the balances will ensure a reduced monthly instalment due.

Tip! Banks will only approve a home loan application if more than 30% of the applicant’s salary is available for the home loan instalment.

How to Improve and increase creditworthiness effectively!

Creditworthiness is a snapshot of a consumer’s credit report which includes a credit score. Accounts that have gets paid on time without any adverse will have a positive effect on credit scores and creditworthiness. To increase creditworthiness and credit scores ensure the following gets maintained:

  • Review your credit report at least twice a year and dispute any inaccurate information. 
  • Pay all credit agreements on time every month.
  • Reduce balances on all clothing, revolving and credit card accounts. Reducing debt strategically will improve credit utilization rations and will increase credit scores. 
  • Avoid applying for any unnecessary credit facilities. Many enquiries on your credit profile in a brief period will hurt credit scores.

In conclusion, when you work on your creditworthiness, there are mainly two rules to remember. Keep account balances low and pay your accounts on time every month without fail. 

Credit Salvage Credit clearance online application

Conclusion on Blacklisted, Creditworthiness, credit scores and Affordability

If you need more help on blacklisting, ITC clearance, credit clearance and affordability, please contact us. We take a practical, hands-on approach on each case and we ensure you are delighted with our services. Alternatively, please visit our blog for many other credit-related articles.

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Debt Counselling: A Simple Guide for 2019

Debt Counselling: A Simple (But Complete) Guide

Ultimate Credit Score Guide 2020

What is a Credit Score

A Credit Score is one tool that lenders rely on in the first stages of a new credit application. They use it to see if it will be worth their while for your application to proceed in their application process. Your credit score is a three-digit number. In this Ultimate Credit score Guide 2020, we will discuss credit scores and the different credit bureaus scores. 

Your three-digit Credit score is a calculation out of a set of complex algorithms. These Algorithms use all your information from your personal report and generate a score.

In South Africa, most consumers are aware of these important scores.  Most consumers will also already know that their score determines whether they will be successful in obtaining a loan, car finance, and home loan finance. Most consumers don’t know what their score is and are unaware that they have four credit scores and not just one.

While assessing a new application lenders will make use of different credit bureaus to analyze risk. It is vital to ensure that your credit score with each bureau reflects only correct information and gets monitored at least twice a year.

To illustrate this we will make use of a real example of a client who we recently assisted.

Mr and Mrs X married in community of property have been renting a two-bedroom unit for the last three years. Mr and Mrs X been saving for a deposit for their own home and wants to start investing in their own home. Mr and Mrs X managed to save a 30% deposit. With plans to have children soon, they have decided this is the ideal time to ditch the rental unit and to buy a family home of their own. As this was their first time buying a house and uncertain of where to apply for the best home loan finance Mr and Mrs X approached a bond originator. The bond originator applied for bond finance with all the major banking institutions in South Africa. The banking institutions all came back with different feedback with 2 out of the 5 banks coming back with an approval.

In this example, we can see all financial institutions will make use of different credit bureaus. Some will make use of one or two and in some cases, some banks will make use of all 4 credit bureaus.

Factors affecting your credit score

Registered NCR Credit providers in South Africa send information about repayments to all the credit bureaus in South Africa. The main four Bureaus in South Africa currently are Transunion, Experian, XDS, and Compuscan. In terms of the Credit Act, these bureaus may hold information about consumers and their account conduct for certain retention periods. This confidential information is then imported into a readable report and a score gets generated based on the information in the personal report.

Your credit report includes:

  • Name and Surname
  • Identity number
  • Postal and Physical Addresses
  • Default information. These listing include Judgments, Default listings, notices, administration orders, and debt counselling indicators. This information Affects credit scores
  • Your credit provider details. It includes account numbers, balances, and monthly instalments. This information Affects scores
  • Payment profile – this section analyses how you repay your accounts monthly. This information Affects scores
  • Inquiries: When you made inquiries with credit providers. This information Affects scores.

 Different credit scorecards for each bureau.

Below please see the different credit scorecards for each Credit Bureau.


Compuscan Credit Salvage


The CompuScore aims to predict the probability of a serious default event occurring within 12 months. The Compuscore has a score range of between 480 and 700 points.

Compuscan Credit Score Categories:

688-700 Minimal Risk. You will get new account facilities and you will receive low-interest rate offers.

642-667 Low-Risk. A good credit score and you will still get new credit. You will receive a very low-interest rate offer.

622-641 Average risk. With a credit score in this range, you will still be able to get new credit. Credit will be more difficult to get and once approved you will get this credit at high-interest rates.

480-621 Very high-risk. You will find it hard to qualify for any new account facilities. You should work on your credit score before applying for any credit.

Website: www.compuscan.co.za


Experian Credit Salvage



The Delphi Score combines market-leading expertise in credit scoring techniques. It uses a unique combination of data assets to deliver unrivalled accuracy in credit ratings.

Experian Credit Score Categories:

601-750 Very Good. You will get new account facilities with ease and at very low-interest rates.

451-600 Good. You will be approved for new account facilities. You will receive low-interest rate offers when you fall in this credit score range.

301-450 Average. With a credit score in this range, you will still be able to get new credit. You will find it more difficult to get credit and once approved you will get this credit at high-interest rates.

0-300 Very poor. You will find it hard to qualify for any credit. You should work on your credit score before applying for any credit.

Website: www.experian.co.za


XDS - Credit Salvage



The Presage Score got developed for the South African market. This XDS credit score card is a suite of predictive generic bureau application scorecards. The scorecard is out of a possible 1000 points.

XDS Credit Score Categories:

840 – 1000 Very Good. You will get new account facilities without any problems. You will also receive low-interest rate offers from registered lenders.

760-839 Above Average. You will be approved for new account facilities. You will also receive low-interest rate offers as a low-risk consumer.

680-759 Average. With a credit score in this range, you will still be able to get new credit but it will be more difficult. Once approved you will get this account facility at high-interest rates.

0-679 Very poor and below average. You will find it hard to qualify for any credit. You should work on your credit score before applying for any credit.

Website: www.xds.co.za


Transunion - Credit Salvage



Transunion Credit Score Categories:

650+: Excellent  - Low risk. You will find it easy to qualify and get new account facilities. You will receive very low-interest rates.

600 - 650: Very good - Low risk. You will still find it very easy to qualify and get new account facilities. You will also receive very low-interest rates.

550 - 559: Good. You will qualify and get new account facilities with certain lenders. You might find it hard to qualify for new account facilities with some lenders.

0 - 549: Poor. You will struggle to get any account facilities. You should concentrate on working on your report before applying for new account facilities.

Website:  www.transunion.co.za


Credit Salvage credit Score


5 Vital steps to Increase Credit Scores.

  • Ensure all accounts, insurances, DSTV, and cell phone accounts get paid every month.
  • Pay off smaller accounts. Keep outstanding balances low on your active cards and revolving account facilities.
  • Only apply and open new account facilities only if you need to. Having many maxed accounts can harm your score.
  • Don’t close any active accounts and store cards with a healthy history and generous limits. If you chose to close these accounts it might impact your usage ratios. This will affect your score.
  • Analyze your report at least twice a year. Dispute any inaccurate information with the particular bureau.

Final Thoughts.

Having a great credit score will make things in your life easier. A good score will help you get new account facilities at lower interest rates.

If you are struggling to increase your credit score or need help paying your debts, Contact Us. We will ensure your score does not drop even further. We will provide you with a complete step by step guide on how to improve your scores with each bureau. We will also help you to remove or update any adverse information.

Other Interesting Articles:

Debt Counselling: A Simple Guide for 2019

20 Essential Tips for Blacklisted Consumers to get out of Debt

20 Essential Tips for Blacklisted Consumers to get out of Debt

Are you feeling stressed and concerned about paying your debt? Have you been told you are Blacklisted? Take a Chill Pill and relax; here, you’re going to learn how you can get rid of all your debt and can live a relaxed life.

Paying off debt can be frustrating and exhausting. That is the reason why credit clearance is out of the question for many. No doubt, it is not easy to get out of debt, but it is not impossible at the same time. For blacklisted consumers, it might take a bit longer to get cleared. If you have made a decision and will stay focused on your goal, then no one can stop you from changing your life.

Before moving forward, let’s have a look at some of the reasons why you should get out of debt.

Why You Should Get Out of Debt?

Less Stress in Life:

When you find yourself in debt, it is without question the major source of stress in your life. You will always remain worried about paying your debts. You will unfortunately always experience negative thoughts. Thoughts like what will happen if you lose your job, or you get unemployed will make your life stressful. Getting rid of your debt eliminates extra stress from your life. Reducing this stress will lead to better mental and physical health.

Better Financial Security:

Debt can be a real danger to your financial security. A substantial percentage of your income wastes in debt payments every month. These debt repayments are a contributing factor why you can't put money aside for savings. When you pay off your debt, you’ll be able to use your earnings for future planning. This ability to plan better will help you to become stable and independent in your finances.

More Freedom over Spending:

Many people can’t afford to buy things because of their debts. Being debt-free, you have more freedom to spend your earnings on the things you enjoy the most.

Better Relationships in Life:

Studies have revealed that living with debt causes many negative emotions. These emotions including anger and depression. These negative emotions affect your relations with your family and people at work. After paying off the debt, you will be a more satisfied and happier person, which will make your relationships better with your spouse, kids, friends, co-workers, etc.

You may have your grounds to get out of debt, but these are some of the reasons that can motivate you to escape from debt.

Debt Counselling


A Better Credit Score

Being over-indebted and having a lot of debts will affect your credit rating and this will show in you having a low credit score. Consumers who are in debt tend to live off credit to survive and will max out credit and store cards. These maxed-out credit and store cards will harm your credit score.

On the positive side once, these accounts get paid off your credit score will almost immediately show an improvement.

What Do You Need to Get Out of Debt if you are blacklisted?

As we’ve already discussed why getting out of debt is important in life, now you may be wondering how to do it. We have compiled a list of actions that should be part of your strategy to eliminate debt from your life.

Believe Yourself That You Can even if you are blacklisted!

First of all, you need to realize that you’re not alone who have debt and who is blacklisted. There are a lot of other people who have already paid off their debts bigger than yours. So have faith and believe in yourself that you can also find yourself debt-free one day. Staying positive will give you the needed motivation and courage to take the necessary steps towards a debt-free future.

Write Down All the Debt You Have:

Then, you need to assess your financial position with all the debt you have. You might be shy or afraid of the obligations you have but living in this guilt may make your position even worse. From smallest to largest, list down all your debts. It will help you to have a clear picture of what you owe and what your interest rates are.

Once you know how much debt you have, then you need to calculate your debt-to-income ratio. It means to compare all the debt with your annual income. If your debt seems to be too high to manage, remember, and focus that there are many people with more debt than you and from today, it is going to go down.

Change Your Behavior:

If you want to get out of debt, it is important to change the old behaviors that got you into debt. Consumers get into debt because of wrong approaches towards different situations. But what you have done in the past doesn’t matter, what matters is that you won’t let that happen again. Even if you hit the jackpot, it will not help you to get out of the debt if you don’t change the behaviors that got you into debt.

For instance, if you took a loan to survive financially after having to pay for an expensive car repair, once you manage to get rid of that debt, try to work on an emergency fund and save something for a rainy day.

Earn More Money:

It is very obvious that if you want to get out of debt, you must earn enough so that you can survive and pay down your debts. Currently, if you’re not earning enough money to pay off the debt, try out the following:

Start A Side Business: 

When your income is not enough to fulfil your financial requirements, starting a side business or part-time job might be a solution. But starting your own business is never so easy; you must have some experience or knowledge of the business you’re planning to start. Despite all this, it is always a great option to bring extra money in your pocket. To easily start a side online business, you may want to consider a ready-made online store for a fraction of the cost. Turnkey Online Shops

Sell Unnecessary Stuff:

If you have some stuff that is collecting dust in the garage, sell them to pay down your debts. If you have two cars, getting rid of one car can save you thousands of rands each year. You can also sell your extra household items on online platforms to get some quick cash. Be disciplined and use the proceeds from the sale of the goods to pay your debts.

Look For Hidden Income:

There are always some hidden opportunities around us through which you can earn a handsome amount of money. But people get shy or reluctant and don’t make use of these earning opportunities. Like if you’re good at some skills, you can make some extra money by teaching it to others.

Consolidate debt

Spend Less:

Earning more won’t help you in paying down the debt if you don’t cut your expenditures. In most cases, people get into debt because they try to get everything they want, even if they can’t afford them. You need to spend less and save more money to pay off your debt. Try these practices to save more money:

  • Try to spend more with cash instead of credit.
  • Stop expensive memberships i.e. gym memberships and DSTV memberships until you pay off your debt.
  • Say no to smoking and drinking, it will not only save your money but will also have advantageous effects on your health.
  • Focus on your shopping and always put non-essential purchases on pending as long as possible. Look out for specials at certain shops and only buy cheaper no-name brands until you out of debt
  • Try to avoid spending on expensive hobbies.
  • Stop eating at restaurants more often.
  • Stop making more investments until all debts are repaid in full
  • Tell your family that you have a limited budget and convince them to cooperate in this.
  • Limit electricity usage and excessive water usage. These saving practices will not only assist the country with its limited resources but will reduce your utility bill.
  • These are some of the practices that help you to save more money, which you can use to pay off your debts.

Debt Counselling Can Help You to Get Out of Debt:

Sometimes saving money isn’t enough, you may need financial guidance to get out of debt. Debt counseling is designed to assist over-indebted consumers who are struggling in debt repayment. Debt Counselling is a regulated process to get you out of Debt.

Once your application gets approved and you come under Debt Counselling, your assets will be safe, and your creditors will be unable to harass you anymore by taking legal actions. The debt counsellor will negotiate with creditors on your behalf to agree on the lowest possible interest rates.

If you want to learn more about Debt counselling, which is also known as Debt Review.

In Conclusion:

Educating oneself in getting out of debt is a wonderful way to get out of debt, but without professional assistance, it will remain an extremely daunting task to complete. Debt Counselling was designed to easily assist consumers to deal with debt. Blacklisted consumers find this process extremely helpful. 

Regardless of what type of debt you’re in, it is important to get out of debts as early as possible. It will take some time to get out of the debt cycle completely, but once you decide and remain focused on the strategies we’ve have discussed earlier, then you will make your future debt-free in no time. Every second you’re wasting, is taking you deeper into financial troubles. So don’t waste further time, start changing your life now! We offer professional Debt Counselling services, and we offer credit clearance advice, contact us today to get rid of your debt.

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