Being blacklisted can really throw a spanner in the works when you need to make big life decisions like buying a home or a car. No one plans for it, but you also need to plan to not get in debt! Still, it happens, and maybe you need to find ways to pay off your debts. Finding a job is a great start, but will you be able to?
Read on to see how being “blacklisted” will affect your job hunting efforts. Read the full picture ofwhat it really means to be blacklisted by reading this article on the myth of being blacklisted.
Not sure whether you are blacklisted? Want to know what the banks and lenders really think of your credit profile?Get your free score by clicking here!
What is Debt?
You probably already know a little about loans and credit cards. Debt comes in many shapes and sizes. Here is a list of the different forms of debt you get in South Africa.
- Personal loans
- Credit cards
- Home loans
- Car loans
- Business loans
- Retail accounts
This is just a shortlist. There are many other types of credit you can apply for. But you need to understand that anything which requires you to repay someone is a form of credit and lead to the debt you have towards another person or institution.
What is Bad Debt?
Any form of debt has specific payment dates. You need to either repay a portion of the debt. Or you need to settle the debt in full (repay completely). Debt becomes bad debt when you continuously miss payment dates.
It’s human to miss one or two payment dates for a clothing account. Or perhaps you forgot to pay your credit card for this month. Missing payments will decrease your credit score. But miss multiple payments and it will turn into bad debt. Bad debt is a loan or other form of credit that is overdue for payment for an extended time.
What is a Credit Bureau?
There are 4 credit bureaus in South Africa. They track and store financial information about every person living and working here. Every time you apply for a loan it gets logged on your credit report. Any late payments or overdue accounts are also logged on your score.
The 4 largest credit bureaus in South Africa are:
Credit bureaus also keep a credit score for each person to rate their ability to repay loans. But someone who misses multiple payments on an account gets blacklisted by these credit bureaus.
What Does It Mean to Be Blacklisted?
In short, it means that you have been listed by the credit bureaus as someone who struggles to repay debt. You have shown over a consistent period of time that you aren’t able to repay your debts. And as a result, your record is blacklisted.
You won’t be able to apply for any other form of debt in South Africa. Lenders will search your record when you apply and realize that you are blacklisted. Lenders don’t usually offer loans to people who are blacklisted. But that isn’t the only thing it affects.
Not sure whether you are blacklisted? Want to know what the banks and lenders really think of your credit profile?Get your free score by clicking here!
Will Being “Blacklisted” Affect Your Chances to Get a Job?
Many people have struggled with the result of being blacklisted. The effect of a blacklisting does not only affect your applications for new loans. Some professionals like lawyers and attorneys struggle to get a job if they have been blacklisted.
Being blacklisted will decrease your chances to get a new job. Especially when you work through traditional recruitment agencies. They check your credit report before they recommend you to possible employers. Some agencies have denied job applications when people are blacklisted.
But, this doesn’t mean you will be rejected in all cases. You should still do your best to look for ways of generating income.
Is It Possible to Clear Your Name?
Yes it is possible, but you will need to be disciplined and stick to some of these guidelines:
- Be responsible and pay off debts.
- Wait 5 years for it to clear from your credit report.
- Work with the ombudsmanif the blacklisting was because of circ*mstances beyond your control (like retrenchment).
5 years can feel like a long time to wait until you can buy your house, car or get a real job. But, by not doing this, you could see yourself still in debt in 10 years!
Not sure whether you are blacklisted? Want to know what the banks and lenders really think of your credit profile?Get your free score by clicking here!
FAQs
The duration of a blacklisting entry on your credit report depends on the type of listing: Judgments: Can remain on your credit profile for up to five years unless a court order rescinds them earlier. Paying the judgment debt allows you to have the judgment listing removed sooner.
Can you get out of being blacklisted? ›
Although you can't rewrite history, there are steps you can take to improve your rating. Contact your lenders. They will work with you to set up a different payment schedule or interest rate. Ignoring the situation will only add to your problems.
What are the consequences of being blacklisted? ›
Employment Obstacles – Some employers conduct credit checks, particularly for finance-related positions. A blacklist status may hinder employment opportunities. Loss of Reputation – Besides tangible repercussions, being blacklisted can tarnish a person's reputation, affecting personal and professional relationships.
Is blacklisting permanent? ›
It is important to note that blacklisting is not always permanent. You can take steps to improve your credit score, get removed from blacklists, and rebuild your reputation.
How do I remove blacklisting? ›
The most straightforward method is to settle the outstanding debt. TransUnion, one of South Africa's prominent credit bureaus, suggests that paying off the debt usually results in your name being removed from the blacklist within 7 to 20 days.
How can I get off the blacklist? ›
The Bottom Line
If you find that your IP or domain is blacklisted, contact each DNSBL service and request that they delete your listing.
How do you fix being blacklisted? ›
How to fix a blacklisted IP address
- Determine the cause of the blacklisting. ...
- Check your email sending practices. ...
- Request a delisting from the blacklisting service. ...
- Use a different IP address. ...
- Monitor your email sending practices.
7 — 20 days. This is the average amount of time it takes for your name to be removed from the credit bureau's blacklist. In order to accomplish this, you must first pay off your debts. The credit bureau determines your credit score based on your financial history.
How do I check if I am blacklisted? ›
Here's how it can be done:
- Step 1: Contact a credit bureau. You can obtain a copy of your credit report from one of the major credit bureaus in South Africa, such as TransUnion, Experian, or Compuscan.
- Step 2: Provide identification. ...
- Step 3: Request a credit report. ...
- Step 4: Review your credit report. ...
- Step 5: Dispute errors.
The only way to verify this would be to speak to any potential employers that denied you and get them to tell you what was said by your former employer, otherwise this is basically impossible to prove.
A blacklist is considered retaliatory as it is intended to create financial hardship for those named on the list. These lists can be created by different entities, including governments and individuals. Anyone who appears on a blacklist may be barred from getting funding, doing business, or getting jobs.
What to do if I get blacklisted? ›
In such cases, you can take the below listed measures: Identify and rectify the problem: Determine the reason for the blacklisting and take the necessary steps to resolve it. If the issue is insufficient funds, top up your account, or clear any outstanding FASTag violation penalties.
Do companies have hiring blacklists? ›
Some companies have maintained an actual list of names of people they never want to hire. This is an illegal practice in nearly every state. HR professionals need to be mindful of any notes that end up in the personnel files of ex-employees that could be viewed as blacklisting.
How long do you stay blacklisted for? ›
Negative information on your credit record normally stays for six years before being deleted. However, paying off bills and being financially responsible might boost your credit score over time.
How long does a person remain blacklisted? ›
How long do Adverse Listings & Judgments stay listed against your name?
| - Adverse listings | 1 Year |
|---|
| - Judgments | 5 Years |
| - Sequestration (Rehabilitation) Order | 10 Years |
| - Administration Order | 10 Years |
The severity of the issue, the credit reference agency, and the reported information can determine how long you are blacklisted. Negative information on your credit record normally stays for six years before being deleted.
How long does it take to get out of blacklist? ›
7 — 20 days. This is the average amount of time it takes for your name to be removed from the credit bureau's blacklist. In order to accomplish this, you must first pay off your debts. The credit bureau determines your credit score based on your financial history.
How long can you be blacklisted from a company? ›
The details vary by jurisdiction, but the gist is that trying to prevent someone from getting hired is illegal. That's not to say that nothing like it ever happens - but since it's illegal in the first place, there's not really a time limit.
Is it true that after 7 years your credit is clear? ›
In general, most debt will fall off of your credit report after seven years, but some types of debt can stay for up to 10 years or even indefinitely. Certain types of debt or derogatory marks, such as tax liens and paid medical debt collections, will not typically show up on your credit report.
