Question: I want to pay off my debt, but I’m “blacklisted”.
Will I get a personal loan if I tell the loan company why I need the money?
Understanding blacklisting and loans
“Blacklisting” is not a recognised practice in South Africa’s credit industry. There is no provision in the National Credit Act for an official “blacklist” of consumers, nor is there a “blacklisting” category at credit bureaus.
That said, South Africans often use the term to indicate impaired credit status – generally the result of default judgements, being under debt review, or other factors.
Consumers with a poor credit status are considered high-risk borrowers, making many lenders reluctant to extend loans to them.
Alternatives to personal loans
Consumers often hope to obtain a personal loan to help them out of financial difficulties.
Instead of seeking a personal loan, consider the following options to manage and improve your financial situation:
Debt management
Assess your financial situation: Work with a debt counsellor to assess your financial health.
Draft a debt management plan (DMP): A debt counsellor can draw up a structured plan to help you consolidate and manage your debts.
Read how debit consolidation is different from debt counselling.
Negotiate with your creditors: A debt counsellor can negotiate better repayment terms with your creditors.
These five tips for financial security can help you develop and maintain good money habits.
Improving your credit score
Financial education: Learning budgeting and money management skills will help you to improve your credit score over time.
Regular monitoring: Tracking your progress and adjusting your plans as needed will keep you on a good financial track.
Consistent payments: Establish a positive payment history by adhering to your DMP.
Find out why maintaining a good credit score matters.
Patience and persistence
Improving your credit score takes time. Commit to responsible financial habits and follow your debt counsellor’s advice to rebuild your credit over time.
