Negative or adverse information refers to instances where you did not ...
Negative or adverse information refers to instances where you did not honour your credit agreements either partially or in full. It includes any negative classification on your report, such as: delinquencies, defaults, having absconded, slow paying, debts being written off, repossession of goods and being handed over for legal action.
The length of time adverse information can show on your credit report depends on how seriously the infringement is viewed by the credit industry.
Adverse classifications of consumer behaviour, which are subjective classifications of behaviour – such as instances of delinquency, defaulting on payments, being a slow payer, or repossession of goods – will remain on your credit record for one year.
Adverse classifications of enforcement action related to action taken by credit providers – such as civil court judgements, administration orders and sequestrations, and rehabilitation orders – have a five-year retention period.
The National Credit Regulator (NCR) has set time periods for how long negative information can reflect on your report. The table below gives you a full breakdown of these:
You can find the full National Credit Regulations here https://bit.ly/33MZYSh.
A sensible plan is to not get into a position where adverse information appears on your credit report by always knowing where you stand with your credit accounts. Compuscan’s www.mycreditcheck.co.za offers free full credit reports, where you can find your account payment history, balance and instalments, which can help you better manage your finances.