What does it mean when an account is adverse within the last 12 months?

Your adverse classification can be because of two reasons.

Not paying an account

Firstly, it could be that you have not been paying an account and the credit provider has acted by sending you a letter of final demand. If you do not pay the full amount owed, this information will remain on your credit report for a year. However, if you pay the full amount before this time, the adverse information will be removed when the credit bureau receives the proof of payment from the credit provider.

Repeated behaviour with regards to credit repayments

The second reason could relate to your repeated behaviour with regards to credit repayment. For example, if you are consistently paying your credit provider, but your payments are late, your credit provider may classify you as a “late” payer. This adverse classification will remain on your credit report for a year. However, if you pay the full amount before this time, the adverse information will be removed when the credit bureau receives the proof of payment from the credit provider.

What can you do to avoid an adverse account?

To avoid this adverse classification in the future, you need to ensure that you are on time with your credit repayments. With most credit providers, you should be able to set an automatic payment for the amount that you select. This will help you make sure that you’re not accidentally missing a payment. If your credit provider does not allow you to set this automatic payment you should write down your payment deadlines and set reminders on your phone so that you are consistently paying your bills on time.