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The term “blacklisted” is quite a well-known phrase in South Africa especially amongst consumers. Being blacklisted means it will be harder for you to get personal loans, buy a house or enroll your child in school – it’s that serious

Credit providers always run credit checks before approving credit as this will reflect your payment history. Bear in mind that no organization can run a credit check without your permission, you are always informed before it happens.

What does blacklisting really mean?

It’s important to know if you have been blacklisted as it helps to be aware of the problems you might encounter in the future. We spoke to Clear my Debt to find out how blacklisting can impact your life. In a nutshell, being blacklisted means that there is negative information which has been placed on your credit profile or record. This is only done by credit bureaus such as Transunion Credit Bureau.

If you’re blacklisted, these are the areas where you might encounter problems

School applications

A number of schools are less inclined to grant your child a place into the school if the parents have a bad credit record. This is why most schools request permission to run a credit check to avoid these conversations down the line. However, some schools are not as strict and will allow your child into the school provided an agreement can be reached.

Rental agreements

When applying to rent a home, most estate agents will run a credit check against your name. If you’re blacklisted, the credit check will pick this up. It's always best, to be honest as some agents are more open and will assist you provided you can show that your circumstances have changed and an arrangement can be reached.

Financial institution employment

Many financial institutions and banks have a higher level of employment scrutiny when compared to other organisations. Honesty and reliability are important and a bad credit record can imply a lack of trustworthiness which could impact job security. If you’re going to apply for a job at a financial institution, be prepared to do a credit check.

The best way to repair your credit record, consider debt consolidation as loans that offer debt consolidation have lower interest rates and have a longer period of time for repayment. The quickest way is to start paying back the money that you owe. This also includes paying back all outstanding amounts as this will assist you in getting back to a good credit history.