How long does debt reflect on your credit score?

If you’ve ever had debt that you didn’t manage well, you may have wondered how long the debt would remain, or be retained, on your credit score. This is known as a “retention period” and it is governed by the law.

We have a look at how these rules apply, and the effect they have on your credit score.

Tip: Make sure your credit report contains accurate information. Join JustMoney for your free report.

How do retention periods work?

According to Annelene Dippenaar, chief legal and compliance officer at Experian Africa, the National Credit Act (NCA) sets out the maximum time period that credit information may be displayed and used for credit scoring and assessment purposes.

“These ‘retention periods’ are applicable to both negative and positive information,” says Dippenaar. “The bureaus can hold and display the data for a shorter period, but not for a longer period.”

Dippenaar says that for different categories of credit information, there are different maximum retention periods. For example:

Enquiries are recorded for a maximum of one year on a credit report.
Payment history can stay on a credit report for a maximum of five years.

Kriben Reddy, vice president of TransUnion Consumer, notes the kind of credit events to which these periods apply.

“Adverse information is anything that a potential creditor might see as negative, such as late payments or accounts that go to collections. These will stay on your account for up to one year, or until you have settled the account, whichever is the earlier,” says Reddy.

“A more serious course of action a credit provider can take is to apply for a court judgment. A judgment is public information and can remain on your credit report for five years, or until the judgment is rescinded by a court, or paid in full,” he says.

The below list, compiled by Dippenaar, notes in detail the relevant maximum periods that apply.

Credit report information	Retention period
Details and results of disputes lodged by consumers	6 months
Enquiries	1 year
Payment profile	5 years
Adverse classifications of enforcement action (when legal action was taken, such as accounts written off, debt handed over, credit card revoked etc.)	1 year, or within the period prescribed by Section 71A of the NCA (until the adverse amount has been settled in full).
Adverse classifications of consumer behaviour (when you are classified by a credit provider as a bad payer)	1 year, or within the period prescribed by Section 71A of the NCA.
Debt Restructuring	Within the period prescribed by Section 71A of the Act, or until a clearance certificate is issued.
Other Civil Court Judgments	The earlier of 5 years, or until the judgment is rescinded by a court or abandoned by the credit provider in terms of Section 86 of the Magistrates Court Act 32 of 1944, or within the period prescribed in Section 71A of the Act.
Maintenance Judgments in terms of the Maintenance Act 99 of 1998	Until the order is rescinded by a court.
Sequestration Orders	5 years, or until a rehabilitation order is granted.
Rehabilitation Orders	5 years, or until a rehabilitation order is granted.
Administration Orders	5 years, or until the order is rescinded by the court.

Sign up with JustMoney today to receive access to your free credit report.

How long does debt reflect on your credit score?

Check your credit score now and take control of your finances. It's instant and totally FREE!

Quick links

Your credit score is ready!