Curious how debt review will impact your credit score?
It’s an interesting topic.
Ready to see how it all works…
What will my credit score be after debt review?
After debt review, applicants’ credit scores vary. The individual’s credit score depends on where it was when they started debt review. Plus, how well they adhere to the process. Debt review applicants who stick with the process and pay their repayment in full and on time may see a slight improvement after debt review.
However, most South Africans will only see significant improvements several months after debt review.
We help thousands of South Africans reduce monthly debt costs, protect their assets, and stay out of court—find out what we can do for you.
Does debt review affect credit scores?
When someone enters debt review, they get a temporary debt review listing on their credit report. This restricts access to new credit so the person can focus on repaying their existing debt. But, the debt review listing isn’t like judgements or defaults that hurt someone’s score. It’s a temporary indicator.
Remember, Debt review is part of a formal process under the National Credit Act, credit providers need to follow the rules too. The temporary debt review listing tells them not to approve new loans or lines of credit while the debt review applicant follows their repayment plan.
So, while it seems like a restriction. And some people believe it hurts their credit score…it’s just a temporary listing, and it’s actually a step in the right direction.
Without debt review, things could get much worse…
Which would actually hurt the person’s credit score.
⭐ Related content: How does debt review work?
How debt review can affect credit scores
The impact of debt review on your credit score isn’t the same all the way through—it changes over time.
Let’s break it down so you know what to expect at each stage.
Short-term impact (while under debt review)
In the short term, the debt review listing restricts access to new credit. Which means creditors aren’t allowed to loan money regardless of the person’s credit score.
Mid-term impact (shortly after debt review)
After debt review, the person’s credit score has the opportunity to start stabilising. Which means it may still be lower than a good credit score. But the ability to maintain consistent payments and a more favourable debt-to-income ratio will help the credit score to improve over time.
Remember, positive behaviour sets the stage for a stronger credit profile in the future. It’s like planting a tree—it won’t grow overnight, but steady care and patience will pay off.
⭐ Related content: How to build a good credit score
Long-term impact (after debt review)
Over the long term, if you keep up with healthy financial habits—paying bills on time, keeping your credit balances low, and steering clear of new debt—your credit score will climb steadily.
This means that in the long-term, the decision to apply for debt counselling (debt review) can make a real improvement.
Debt review itself doesn’t boost or destroy someone’s credit score—it’s their financial habits and payment history. Debt review gives South Africans a chance to fix their financial situation and pick up responsible credit behaviour.
Example:
Someone who exits debt review with a score of 500 could, by maintaining good financial habits like making timely payments and using credit wisely, boost their score to 700 or more within a few years.
What is your estimate? *The calculation is an estimate actual amounts may vary. What is your estimate? *The calculation is an estimate actual amounts may vary.
Try our debt reduction calculator to calculate your lower monthly debt instalment*.
Try our debt reduction calculator to calculate your lower monthly debt instalment*.
Frequently asked questions
Can banks discriminate after debt review?
No, banks aren’t allowed to discriminate after debt review. The National Credit Act protects consumers from this. After debt review, the debt review listing is removed, which means it may not factor into a bank’s decision to lend someone money.
Just remember, banks still look at the applicant’s overall creditworthiness before they approve loans. This means some consumers may need to continue working on their score before applying for new loans or credit accounts.
How long does debt review last?
Debt review lasts until the applicant completes the debt review process and gets their clearance certificate. Which typically takes between 36-60 months—though it can be even faster. After the process, the debt review status is permanently removed.
⭐ Related content: How long does debt review last? (detailed guide)
How soon can I apply for credit after debt review?
South Africans who complete the debt review process can apply for credit as soon as they get their clearance certificate and credit bureaus update their credit profile. This could be within one week of getting a clearance certificate but it can take up to three months.
Will my negative listings be removed after debt review?
After debt review, the debt review status will be removed from the applicant’s credit profile. This happens after they get a clearance certificate. However, other negative listings—like late payments or defaults—will stay on their report for the usual timeframe. Which can range from two to ten plus years, depending on the type of listing.
Here’s what debt review does for the process: It stabilises your ability to pay on time and in full, which means that no new negative listings like judgements pile up. Then, it is just a matter of time before old negative listings ‘expire’ and disappear.
How can I check if my debt review status has been cleared from my credit profile?
You can easily check your credit profile using a credit reporting tool like My Score Hero, ClearScore, My Credit Check. Just sign up to access your credit report and look for a debt review flag or listing.
In summary
Remember, it’s not about the short term. It’s about the long-term. It’s about regaining financial stability.
So, don’t stress about the numbers right away.
Focus on getting out of debt first.
Then, maintain healthy habits, like paying bills on time and keeping your credit use in check.
Be patient and keep working at it—you’ve got this.
Perhaps you’re doing some research to see if debt review is right for you…If that’s the case, try our online assessment at My Debt Hero to see if you qualify. We can help you through the process.
